Troubled Canadian natural and organic retailer Planet Organic Health Corp. has agreed to sell all its assets to creditor Catalyst Capital Group in a bid to eliminate its debts.

Planet Organic, which received bankruptcy protection last month when private-equity firm Catalyst called in the retailer's US$31m-plus debts, said on Friday (21 May) that it would receive no cash from the sale.

As of the end of April, the company's debts stood at over US$31.1m.

Planet Organic said the deal remained subject to the approval of Ontario's Superior Court of Justice but was set to close on 7 June. 

On that date, private-equity firm Catalyst will attain all of the company's assets in Canada and the US.

"The corporation's operating plans are unaffected by today's announcement. All retail outlets will continue to operate in Canada and the US without disruption to existing customers, employees, or suppliers," the retailer said.