HongMall App Operator Initiates Restructuring Amid Liquidity Challenges
Aird & Berlis is acting as counsel to Royal Bank of Canada (“RBC”) in connection with a notice of intention to make a proposal filed under the Bankruptcy and Insolvency Act on June 19, 2025, by Webooook Information Technology Limited (“Webooook”), the operator of the HongMall app. Ernst & Young Inc. is the proposal trustee.
Webooook, an e-commerce company based in Markham, Ont., is behind the HongMall online shopping platform, which offers Asian beauty, lifestyle and household products to North American consumers. Once a key distribution channel for Asian goods in Canada, HongMall is now the subject of a court-supervised sale and investment solicitation process as Webooook seeks to restructure its operations and financial affairs in response to mounting losses, covenant breaches and liquidity constraints stemming from an aggressive multi-year expansion into Japan and the United States. As of the filing date, Webooook owed approximately $15.4 million in secured and unsecured liabilities.
The Aird & Berlis team acting as counsel to RBC consists of Sanjeev Mitra and Calvin Horsten (Financial Services).
