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Clavet Junction will stay open for now after new backers come through

Click to play video: 'Forced closure of Clavet, Sask. business has nearby community puzzled'
Forced closure of Clavet, Sask. business has nearby community puzzled
Clavet Junction has been a mainstay for the community but it's being forced to close at the end of April, sparking reaction from the village of roughly 400 people – Apr 25, 2021

The co-owner of DOMO Clavet Junction received some good news recently, after getting a letter of intent from new backers hours before a deadline given to her by Royal Bank of Canada.

Global News previously reported that the Clavet, Sask., business was going to be taken back by RBC, the bank stating the owners of the business agreed to terms when they opened the new location in May 2018.

The Junction has been a fixture in the small town just east of Saskatoon for 44 years — three of which were spent at its current location just outside of the village.

Co-owner Noreen Taylor told Global News in late April she had received a notice of forbearance from RBC.

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Taylor added that on April 9 she negotiated a new forbearance agreement through June 1.

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Her lawyer told her that conditions with the bank meant the business had until April 30 unless they could get a letter of intention to purchase or new financing.

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RBC previously told Global News in a statement that the bank respects the privacy and confidentiality of client relationships and does not provide details on client-specific situations.

Taylor received a letter of intention on April 29. She thought she was going into work on April 30 to pack her personal belongings and lock the doors before the bank took over.

“Instead I went to work April 30 believing in miracles,” Taylor told Global News.

Taylor said she sent the letter of intention to purchase to her lawyer and the banker right away.

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“I can honestly say I have lost a lot of sleep. I had many sleepless nights over the threat of having to claim personal bankruptcy. But since the letter came, I’ve been able to sleep better at night.”

The deal still needs to be finalized and approved by the banker.

Though she’s not sure what happens next, Taylor is thankful for the people behind the letter and the community support she’s received.

-with files from Brady Ratzlaff

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