January 23, 2019
Satin Finish Hardwood Flooring, a Toronto, Ontario-based manufacturer of solid and engineered hardwood and importer/distributor of laminate and luxury vinyl flooring, filed an NOI on January 23, listing $38.0MM in liabilities, including $14.7MM to CIBC. The company, which employs approximately 120 people, of which more than 90 employees are members of the Teamsters, Local Union 847 (the "Union"), services some of Canada's most prestigious home builders and flooring contractors. In the weeks leading up to the NOI filing, the company and the Union were engaged in negotiations regarding the renewal of their collective bargaining agreement. In December 2018, the negotiations broke down and the union has been locked out since then. A major cause of the company's financial issues is its failure to invest enough in new production technology over the past several years. With increasing competition, the company started to experience financial difficulties due to declining profit margins. The company will proceed to canvass the marketplace for purchasers interested in the company's business and assets. MNP is the proposal trustee. Counsel is Minden Gross for the company, GSNH for the proposal trustee, Gowling WLG for CIBC and Triano Law for the Union.