Goodwill Industries of Toronto, Eastern, Central and Northern Ontario says efforts to restructure have been unsuccessful and it's going bankrupt.
Keiko Nakamura, who has resigned as Goodwill's CEO, said Monday in a statement that she has concluded there is no viable option that allows the organization to re-emerge from the bankruptcy process.
Nakamura says a revival plan to reopen profitable stores, although feasible, cannot be achieved without significant financial investment and the lack of security for a loan is an untenable risk for potential investors.
Of the $6 million debt, approximately $4.2 million is owed to former employees in vacation entitlement and severance.
The trustee has called a meeting with creditors for March 2nd.
Last month, the charitable organization announced it would close 16 stores, including in Orillia and Barrie, 10 donation centres and two offices due to cash flow problems, affecting more than 430 workers.