Our summaries of recent Canadian insolvency filings.
Confidence Tool & Mould Design
January 22, 2019
Confidence Tool & Mould Design, an Oldcastle, Ontario-based company, was placed in receivership on January 22 on application by BMO, owed approximately $6.0MM. BDO was appointed receiver. Counsel is Aird Berlis for the applicant and Miller Thomson for the receiver.
Sandpaul Investments
January 21, 2019
Sandpaul Investments, a Thunder Bay, Ontario-based property management company, was placed in receivership on January 21 on application by RBC. BDO was appointed receiver. Dentons is counsel to the applicant.
RMK Investments
January 21, 2019
RMK Investments, a Vancouver, British Columbia-based company that sells and installs the Hunter Douglas brand of home interior blinds and custom-made draperies which were sold exclusively through the Hudson's Bay ("HBC") Department stores, filed a proposal on January 21, listing $882.6M in liabilities, including $307.5M to Hunter Douglas Canada. Under the terms of its contract with HBC, the company was not allowed to perform any of its own direct marketing to customers. Previously, the company had the advantage of selling the Hunter Douglas brand of blinds which were not available to much of the competition. This allowed the company to operate its business on a high volume and high margin basis. In the past several years, however, big box retailers such as Costco and Home Depot also began to sell the Hunter Douglas brand of blinds. The increased competition and existing marketing constraints on the company reduced its margins, ultimately resulting in negative profitability. The company will cease operations on January 31. The Bowra Group is the proposal trustee.
Pizza Salvatore
January 17, 2019
Pizza Salvatore, a Thetford Mines, Quebec-based pizza restaurant franchise with more than 12 restaurants in operation in Quebec, filed for bankruptcy on January 17, listing $761.0M in liabilities. Raymond Chabot is the bankruptcy trustee.
Gymboree Group
January 17, 2019
Gymboree Group, a San Francisco, California-based chain of specialty retail stores for children’s apparel with operations across the US, Canada and Australia filed for bankruptcy under Chapter 11 in the United States Bankruptcy Court on January 17. Concurrently, Gymboree ("Gymboree Canada" or the "Company") filed an NOI on January 17, listing $9.4M of liabilities, including $8.9M of liabilities that are owed to entities that are subsidiaries of the Gymboree Group. The Company operates 49 retail stores in Alberta, British Columbia, Manitoba, Nova Scotia and Ontario. A group of agents including Great American, Tiger, Gordon Brothers, and Hilco (the "Agents") will be leading liquidation efforts across the US and Canada. KPMG is the proposal trustee. Counsel is Norton Rose Fulbright for the Company, Osler for the proposal trustee and Cassels Brock for the Agents.
2104488 Ontario
January 14, 2019
2104488 Ontario, which operates a Boston Pizza at 100-5170 Yonge Street, Toronto, filed for bankruptcy on January 14, listing $1.7MM liabilities, including $900.0M to BNS. msi Spergel (ICIN) is the bankruptcy trustee.
2433552 Ontario
January 11, 2019
2433552 Ontario, carrying on business as GreenTerra Homes, filed for bankruptcy on January 11, listing $5.0MM in liabilities. The company commenced operations in 2017 as a custom builder of steel frame modular homes, metal buildings, sheds and related prefab kits. The company operated from a 110,000 sq. ft. plant located in Trenton, Ontario, which is owned by a related corporation. Albert Gelman is the bankruptcy trustee.
Nordan Group
January 11, 2019
Nordan Group, a Cambridge, Ontario-based company that designs and produces multi-material marketing displays, was placed in receivership on January 11. Dodick Landau was privately-appointed receiver. In December 2018, the company made an assignment in bankruptcy and Scott, Pichelli and Easter acted as the bankruptcy trustee. The company's assignment was an event of default under its security agreement with BNS and, consequently, the BNS security became enforceable.
Scaffold Gold
January 10, 2019
Scaffold Gold, a Calgary, Alberta-based company specializing in the design, manufacturing and supply of factory direct formwork and scaffold systems, with a self-financed factory in China, was placed in receivership on January 10 on application by Canadian Western Bank. Hardie & Kelly was appointed receiver. Counsel is Fasken for the applicant and Bishop & Mckenzie for the company.
Kodiak Group of Companies
January 10, 2019
Kodiak Group of Companies, a St. Albert, Alberta-based full service wireline company with operations throughout Western Canada and the US, was placed in receivership on January 10 on application by ATB Financial. EY was appointed receiver. Norton Rose Fulbright is counsel to the applicant.