Hakim Optical, one of Canada’s most recognized names in eyewear retail, has filed for creditor protection under the Bankruptcy and Insolvency Act (BIA) as it faces mounting financial pressures. On April 16, 2025, Hakim Optical Laboratory Limited filed a Notice of Intention to Make a Proposal (NOI), marking a pivotal moment for the Toronto-based company founded in 1967 by Iranian Canadian entrepreneur Karim Hakimi.
The filing comes at a time of heightened competition and shifting consumer behaviours within Canada’s optical retail industry. KSV Restructuring Inc. has been appointed as the Proposal Trustee, with Bennett Jones acting as counsel for Hakim Optical, Chaitons LLP representing the Proposal Trustee, and Loopstra Nixon LLP acting for the secured creditor.
Hakim Optical’s Storied Background
Hakim Optical began with humble roots, as founder Karim Hakimi started by grinding lenses from discarded window glass after immigrating from Iran to Canada. Over the years, the business grew significantly, building a national footprint of over 160 locations (now closer to 140) and gaining widespread brand recognition thanks to the memorable “Your Eyes Can Have it All at Hakim Optical” jingle.
Headquartered in Toronto, Hakim Optical today employs around 650 people and offers a full suite of optical products and services, including prescription eyeglasses, sunglasses, safety glasses, and eye exams through affiliated optometrists. However, despite its long-standing presence, the chain has not been immune to pressures reshaping the Canadian retail landscape.
Mounting Challenges Lead to Financial Distress
Several factors contributed to Hakim Optical’s financial difficulties. Pandemic-related closures and associated revenue losses severely impacted operations. Competition intensified with the entrance of new players such as Specsavers, coupled with aggressive discounting from large-format retailers like Costco and Walmart. In addition, shifting consumer shopping patterns towards more value-based optical retail further strained Hakim Optical’s market share.
These challenges, along with mounting debt, ultimately culminated in the company’s decision to seek protection under the BIA in an attempt to restructure its operations and liabilities.
Secured Lender Positioned as Potential Buyer
A critical element in the unfolding restructuring is the role of 1001112855 Ontario Inc., which holds a secured claim against Hakim Optical of approximately $15.8 million. Incorporated on January 10, 2025, and headquartered in Bolton, Ontario, the company is directed by Dan Cesana and Mark Cesana of the Hardrock Group of Companies, and Renzo Moser and Jonathan Soriano of Trento Kia in Toronto.
Significantly, 1001112855 Ontario Inc. is not only Hakim Optical’s senior lender but also appears to be its prospective purchaser. This dual role positions the company to acquire Hakim Optical’s assets through a pending Asset Purchase Agreement (APA), subject to court approval.
Lawrence Ophthalmic Lab Inc. Enters Protection
In a related move, Lawrence Ophthalmic Lab Inc., under the same ownership umbrella, filed its own NOI on April 22, 2025. Lawrence’s financial position mirrors Hakim Optical’s in several ways, with 1001112855 Ontario Inc. also listed as the senior secured creditor.
Lawrence Ophthalmic Lab’s unsecured creditors primarily consist of key suppliers such as Nikon Optical Canada Inc. and Satisloh North America Inc., while Hakim Optical’s extensive unsecured creditor list includes numerous landlords, suppliers, and utility companies across the country.
Financial Obligations Outlined
According to the filed documents, Hakim Optical Laboratory Limited has total creditor claims amounting to approximately $25.5 million. Of that amount, $15.8 million is owed to 1001112855 Ontario Inc. as a secured creditor, while unsecured creditors account for approximately $9.7 million. The list of unsecured creditors includes numerous landlords, suppliers, and utilities, reflecting the wide operational footprint of Hakim Optical across Canada.
Lawrence Ophthalmic Lab Inc., which filed its NOI on April 22, 2025, reports total liabilities of approximately $16.9 million. Like Hakim Optical, it also lists 1001112855 Ontario Inc. as its secured creditor for $15.8 million, while unsecured creditors are owed approximately $1.1 million. Unsecured creditors in Lawrence’s case primarily include major optical suppliers such as Nikon Optical Canada Inc. and Satisloh North America Inc.
Competition Reshaping the Optical Market
Retail expert George Minakakis, founder of Inception Retail Group, provided insights into the broader context behind Hakim Optical’s restructuring. “There’s intense competition now in the Canadian eyewear market,” Minakakis said. “Specsavers’ entrance into Canada has been a game-changer.”
He noted that Hakim Optical was particularly vulnerable to new entrants and intensified discounting. “With Walmart, Costco, and others aggressively expanding their optical departments, traditional players like Hakim Optical struggled to maintain market share,” he said.
“As the founder and the strategic operator of Hakim Optical, Mr. Hakim was a maverick. He should be recognized as being one of the first to provide optical retail services and eye care to the public with multiple stores,” Minakakis said. “
“However, as competition grew and became more sophisticated with higher end products, store designs, in store eyecare and service propositions, it became a bigger challenge to remain relevant. In addition, Hakim Optical was also competing against organizations with deep marketing, merchandising, and financial capabilities.”
Weaknesses in Data Management and Revenue Impacts
A former Luxottica Senior Executive, Minakakis also added that as the world became more digitized and data a key attribute to growing one’s business. “The success attributes in this industry were contingent to communicating with customers both on new products, services, and the need for regular eye-exams. That’s in addition to having ample optometric doctor coverage,” Minakakis said. “However, optometrists are drawn to brands that have sufficient foot traffic and state of the art optometric equipment like SpecSavers and LensCrafters.”
The combination of operational fragility, increased competition, and shifts in consumer behaviour likely led to lost opportunities and revenue declines for the company.
Landlords and Vendors Impacted by Restructuring
The creditor filings reveal that Hakim Optical owes substantial sums to many landlords, including Oxford Properties, Ivanhoe Cambridge, and Cushman & Wakefield Asset Services. Utility companies such as Telus are also significant creditors, likely due to telecommunications services tied to store and operational systems.
In some cases, creditor claims may reflect lease obligations for the remaining terms rather than just unpaid arrears, suggesting an accelerated recognition of liabilities as the restructuring unfolds.
The Road Ahead for Hakim Optical
Both Hakim Optical and Lawrence Ophthalmic Lab Inc. are now navigating a court-supervised restructuring process. Finalizing the Asset Purchase Agreements with 1001112855 Ontario Inc. and seeking court approval for the sale are immediate priorities.
Creditors are currently stayed from taking action and will be invited to file claims at a later date once directed by the Proposal Trustee.
Minakakis expressed cautious skepticism about the company’s future under new ownership. “Without strong leadership, operational improvements, and a coherent brand strategy, it’s going to be very difficult for new owners to succeed,” he said.
