SRTX gets court approval of sale transaction

SRTX gets court approval of sale transaction

SRTX Inc. Receives Court Approval for Sale Transaction

On February 26, 2026, SRTX Inc., the Canadian materials innovator behind the Sheertex® brand, announced that the Superior Court of Québec has approved its previously disclosed sale transaction to A.Y.K. International Inc., a hosiery-focused company. The approval follows a strategic review process and the filing of a Notice of Intention to Make a Proposal under the Bankruptcy and Insolvency Act (BIA), with PricewaterhouseCoopers Inc. serving as trustee.

The transaction, structured as a competitive process to maximize value for stakeholders, authorizes SRTX to proceed with closing the deal, subject to customary conditions. Key terms include the transfer of SRTX’s Sheertex brand and proprietary materials technology to A.Y.K., which intends to retain a limited number of employees to ensure operational continuity. Certain assets, such as SRTX’s Pointe-Claire lease, machinery, and equipment, will remain under the BIA proceedings.

The sale addresses SRTX’s ongoing financial challenges, including liquidity constraints, high production costs, and market competition. Despite raising over $200 million since its 2017 founding, the company reported a $19.5 million operating loss in the first 10 months of 2025, driven by declining revenues and operational inefficiencies. The transaction is positioned as the “best possible restructuring option” to preserve value while excluding non-core assets.

A.Y.K. will acquire the business through a “reverse vesting” structure, where unwanted liabilities and assets are transferred to a separate entity. The deal price remains confidential pending closing. PricewaterhouseCoopers Corporate Finance served as SRTX's financial advisor during the strategic review.

Closing is expected in the coming days, pending finalizing remaining conditions. The transaction underscores the challenges faced by innovators in capital-intensive industries and highlights the role of strategic sales in restructuring distressed assets.

(https://www.newswire.ca/news-releases/srtx-inc-receives-court-approval-of-sale-transaction-following-strategic-review-829053244.html): SRTX Inc. court filing and press release.
(https://www.theglobeandmail.com/business/article-sheertex-owner-to-be-sold-to-maker-of-secret-silks-pantyhose-through/): The Globe and Mail analysis of SRTX's financial filings.