April 2, 2020

Filing Type:

Company Counsel: Carscallen

Trustee: KPMG

Applicant: RBC

Applicant Counsel: Burnet, Duckworth & Palmer



McArthur Furniture ("McArthur"), an independent family-owned furniture and mattress retailer with locations in Calgary and Airdrie, Alberta, along with MTK Properties ("MTK"), were placed in receivership on February 4 on application by RBC, owed approximately $653.6 thousand by McArthur and $7.2 million by MTK. McArthur explored options to sell its Calgary and Airdrie retail lands and buildings as part of an overall restructuring plan to address the challenges the company was facing due to the downturn in the Alberta economy and growing shift to online shopping. The receivership order was stayed to allow the company to pursue these two prospective land sales, which would have been sufficient to repay RBC in full. Although the company sold its Calgary location before the deadline on March 31, it failed to sell its Airdrie location. As such, the appointment of KPMG as receiver came into effect on March 31. Counsel is Burnet, Duckworth & Palmer for the applicant and Carscallen for the companies.