Caroline Néron:$ 9 Million debt and it has 736 000$ to her husband

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The business of jewelry from Caroline Néron are overrun with more than $ 9 million of debt, of which approximately $ 1.5 million in GST and QST, non-remittances to governments, as well as 360 000 $ in wages to pay employees.

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The expert in corporate governance and Michel Nadeau pointed out Friday that in such situations of insolvency, creditors generally receive less than 10% of what they should be.

The future of Nero, inc. and Boutiques Neron inc. rests primarily in the hands of the firm’s financial montreal-based Fiera Capital, which has granted a loan to high interest of $ 5 million at Nero inc. in 2017.

Loan from his or her spouse

“Fiera has a warranty on the bulk of the group’s assets “, said Friday the Newspaper the bankruptcy trustee Ronald Gagnon, of the accounting firm BDO Canada.

It will also be necessary to see if the husband of Ms. Nero, Réal Bouclin, will spend the sponge on the 736 000 $ which it has loaned to Nero, inc. through a numbered company related to its chain of retirement residences, Network Selection. The trials and tribulations of business of Caroline Néron led to the couple’s separation, which is divorce.

The restructuring of enterprises cost is also expensive to Ms. Nero, since it has advanced more than 710 000 $ Néron inc. Like most claims, it is not guaranteed and will be refunded only in part, in the best case.

The companies of Caroline Néron must nearly 360 000 $ in wages. This represents more than $ 2000 per employee on average. If the employer is unable to pay, the workers will be able to turn to the federal program of protection for employees.

The inland revenue also run the risk of losing big in this collapse. Néron inc. and Boutiques Neron inc. need $ 1.4 million to Revenu Québec and of $ 125,000 to Revenue Canada. It comes from taxes levied on the retail sales, which are unsecured debt.

Rescue feasible ?

In the hope of saving the brand, Caroline Néron, entrepreneur, account closing nine of the 14 existing shops, license 64 of 152 employees of the group and close the Montreal head office.

“It remains to be seen if this idea is feasible and if it is exactly the right route to take,” said Ronald Gagnon, who says he is optimistic, however.

“If there was no hope, we would not have accepted the case,” he insisted.

Mr. Nadeau believes that Caroline Néron has good chances to revive its business if it succeeds to convince investors to inject capital.

“With a debt greatly reduced, and a new business plan, this is not impossible, he said. But it will be tight. “

What they said

“She has built a very strong image. This is a very good saleswoman […], but it will have to adjust [the shooting]. It will have to be an expert in finance and management to manage the inventories and part of the kitchen of his organization. “

– Michel Nadeau, financial analyst, Institute of governance

“It was the right thing to take the bull by the horns. This is not easy, to do that, for an entrepreneur. She has made the right decision, she will be able to be placed. I think it’s going to get out of it. “

– Philippe R. Bertrand, a specialist in digital marketing

“The entrepreneurs who succeed are those who have committed the most mistakes, and the resilience ensures that a failure, it is a springboard to bounce back. There are stores that will remain open. And then, there is also an opportunity to create an online store. She knows her strengths : marketing, business development. “

– Fabien Major, financial security advisor

 

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