Pelican Group’s assets will be sold through a single-phase auction process as part of its ongoing restructuring under creditor protection, the company announced Thursday.

The company, which includes Pelican International, Pelican US Topco and Confluence Outdoor, received court approval for the sale and investment solicitation process (SISP) under the Companies’ Creditors Arrangement Act (CCAA) on March 19. The auction is intended to result in the sale of all, or most, of the company’s business and assets.

The company’s main operations include its Laval, Que., headquarters, a manufacturing facility in Salaberry-de-Valleyfield, Que., and a warehouse in Varennes, Que.

“This difficult but necessary decision was made to ensure the Pelican Group’s viability as a leader in the paddle [boat] and nautical sports industry, and in the best interest of our customers, employees, and shareholders,” said Pelican in a news release.

FTI Consulting Canada has been appointed as the court monitor and will oversee the process. The SISP seeks buyers or investors for all or substantially all of Pelican’s business and assets. The deadline for binding bids is set for April 10, 2025.

Additionally, offers are being sought for GSI Outdoors, a Pelican affiliate that is not part of the CCAA proceedings. Prospective GSI buyers must submit a non-binding letter of intent by May 5, with final bids due by June 23.

Pelican said it plans to continue operations without interruption.

“We are confident that Pelican Group will emerge from CCAA protection well-positioned to continue designing and manufacturing innovative, durable, and accessible paddle sport boats and nautical accessories that have defined our brand for over 50 years,” said Pelican in the news release.

The Journal de Montréal previously reported that the court had approved the sale process.

Pelican has accumulated more than $181.4 million in debt, the Journal reported while citing court documents.

Founded in 1968, Pelican, grew rapidly in recent years through acquisitions, purchasing U.S.-based Confluence in 2019, Advanced Elements in 2021, and GSI in 2022. However, the company struggled when sales, which surged during the early pandemic, began to decline in 2022.

Since November 2022, revenues have dropped by half, and Pelican has recorded more than $34 million in losses, leaving it unable to meet financial obligations, the Journal reported.

The company employs around 1,000 people across Canada and the U.S..

The court monitor expects to identify a buyer by April 14, with a final transaction expected on April 21, according to the Journal.

Pictured: The interior of Pelican’s manufacturing plant in Salaberry-de-Valleyfield, Que.

Photo: Pelican

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