July 29, 2021
Industrial Automation Components Corporation, a London, Ontario-based electrical equipment and supply wholesaler, filed for bankruptcy on July 29, listing approximately $588 thousand in liabilities, including $179 thousand to Quantum First Automation. Since inception, the company has been under-capitalized. As a result, the company came to rely on high interest credit facilities as a primary source of working capital. Furthermore, for many years the company's profit has been on the decline due to narrowing product margins in response to industry-wide changes eliminating third-party suppliers. More recently, sales in key industries including Canadian pulp, mining, and petrochemical have been on the decline and worsened following the 2020 global pandemic. Lacking sufficient working capital to maintain normal operations or to fund a restructuring of the business, the company decided to stop operating on July 28. MNP is the bankruptcy trustee.