Pelican International, one of the world’s largest manufacturers of kayaks, canoes and other watercraft, has been put up for sale after accumulating more than $180 million in debt.

The Quebec Superior Court has approved the sale process in an effort to recover funds for creditors, the Journal de Montréal reported

The Laval, Que. -based company, which sought creditor protection under the Companies’ Creditors Arrangement Act (CCAA) on February 25, owes $181.4 million, with a banking syndicate led by National Bank of Canada accounting for $130 million of that amount, the Journal reported while citing court documents.

The Fonds de solidarité FTQ, which invested $20 million in Pelican in 2015, also faces significant losses, according to the report.

Pelican, founded in 1968, grew rapidly in recent years through acquisitions, purchasing U.S.-based Confluence Outdoor in 2019, Advanced Elements in 2021, and GSI Outdoors 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.

Despite its financial troubles, the company, which employs around 1,000 people across Canada and the U.S., has already received an unconfirmed offer, the Journal reported. The formal sale process is moving quickly, with prospective buyers required to submit bids by April 10.

The court-appointed monitor expects to identify a buyer by April 14, with a final transaction expected on April 21. In the meantime, Pelican has secured $4 million in interim financing to maintain limited operations.

Pelican’s ownership remains primarily with brothers Christian and Antoine Élie, with FTQ holding a minority stake of less than 20%. The company’s main operations include its Laval headquarters, a manufacturing facility in Salaberry-de-Valleyfield, Que., and a warehouse in Varennes, Que.

Photo: INFOSuroit.com/Pelican International