June 12, 2019
Holistic Blend, a Mississauga, Ontario-based manufacturer of natural organic pet food and pet health care products, was placed in receivership on June 12 on application by Bridging Income Fund, owed approximately $2.4MM. Despite routinely being unable to fund payroll, rent and production, the company maintained the support of Bridging for several years with promises of significant sales growth. Recently, however, it has become evident that this growth is not materializing, and the latest balance sheets and income statements show that the company is insolvent on a balance sheet and cash flow basis. On May 14, the company advised Bridging that it would stop selling pet food and focus on pet health supplements only. Having lost faith in the company's ability to manage its business, Bridging subsequently demanded repayment. BMO, owed $807.0M by the company, also did so shortly thereafter. KSV was appointed receiver. Counsel is Chaitons for the applicant, MacDonald Sager Manis for the company and Aird & Berlis for the receiver.