On August 27, 2024, 2675970 Ontario Inc. et al. ("Tokyo Smoke"), a cannabis retailer with 61 owned and 29 franchised stores across Canada, obtained protection under the Companies' Creditors Arrangement Act (CCAA). The companies faced insolvency due to changes in cannabis licensing, market saturation, pricing pressures from undifferentiated products and the grey market, and rising operating costs from inflation. Tokyo Smoke reported a $29.3 million net loss in the last fiscal year and carried $91.1 million in secured debt, including $38.6 million owed to BMO.

The CCAA process aims to restructure operations by closing 34 underperforming stores and renegotiating leases for the remaining locations. Additionally, a sale and investment solicitation process (SISP) will be pursued, with TS Investments Corp., Tokyo Smoke's sole shareholder, acting as the stalking horse bidder and providing a debtor-in-possession (DIP) loan.

Legal advisors include Reconstruct for Tokyo Smoke, Stikeman Elliott for the monitor (A&M), Aird & Berlis for BMO, and Osler for TS Investments.