This summer, The Escape Route Adventure Group’s closure of its Whistler and Squamish stores led to swirling rumours from locals and curiosity from reporters and writers at Pique.
The question of why the popular retailer shut down was answered thanks to a bankruptcy sale at Maynards Liquidation Group. The sale began Oct. 10 in Vancouver, with an advertised $1 million to $2 million in inventory for sale. Bankruptcy filings with the Supreme Court of British Columbia in Bankruptcy and Insolvency tell a tale of mounting debt, and inventory assets estimated at $110,000.
Founded in 1986, the company sold outdoor gear and apparel, from backpacks, hiking and biking gear to tents, skis and snowboards.
MNP Ltd. Is the Licensed Insolvency Trustee handling the bankruptcy. As the trustee, MNP’s website notes Escape Route voluntarily filed for bankruptcy July 22, 2024.
MNP’s preliminary report to creditors on Aug. 7 notes owner James Gorrie worked his way up to ownership after starting with Escape Route in 2017. He initially sought ownership in 2019 from the previous owner, James Retty. The deal fell through because of the COVID-19 pandemic, but “during that time, the Company was operating successfully despite continuing to accrue debt.”
By 2022, Gorrie made a second offer and successfully bought the company Sept. 1, 2022.
Soon after, Gorrie learned the company was in financial distress. Some vendors cut ties when ownership changed, and others halted shipping because of “outstanding legacy debts that were owed.” Gorrie tried to repair the relationship with vendors whose legacy debts he carried by paying them, but they wouldn’t continue working with the company.
By fall 2023, Gorrie sought out Sam Waddington as a potential business partner who could provide a capital injection. The funds were never received. The company couldn’t make debt payments and laid employees off June 4, then shut down June 5, 2024.
By July 19, the company voluntarily filed for bankruptcy.
Vancouver City Savings Credit Union (Vancity) is the main secured creditor. Secured creditors are paid out first, and Vancity is owed approximately $537,000. Other secured creditors include Arc’Teryx Equipment Inc, VF Outdoor Canada Corp. and The Province of British Columbia.
If the Canadian Revenue Agency (CRA) finds any former employees are owed, their owed payments would come before creditors.
For unsecured creditors, they have claims amounting to approximately $1,243,848.81, and “this amount does not include any amounts of secured creditors for shortfalls on their security,” according to the report.
The company’s assets come from inventory, which MNP removed from both Escape Route locations in Squamish and Whistler. Inventory was valued at $110,000 but advertised in a liquidation sale at Maynards Liquidation as worth $1 million to $2 million. No cash balance remained in the company’s accounts.
Based on MNP’s estimates, “there will be no recovery to unsecured creditors.”
