Bold Canine placed in interim receivership after landlord lockout

Bold Canine Inc., an Ontario manufacturer of frozen raw pet food, was placed into interim receivership on June 25, 2026, on application by Kensington Private Equity Fund, owed approximately $4.83 million under a secured promissory note.

Founded by Caroline Bolduc and David Herz in 2009, Bold Canine manufactures frozen raw food for dogs and cats under the Bold by Nature brand from a leased plant in Erin, Ontario. Its production process uses specialized equipment to form food patties and liquid nitrogen equipment to freeze and cool raw ingredients. The company employed approximately 50 people when the proceeding began. Kensington invested approximately $7.1 million for preferred shares in 2020 and later provided additional liquidity under a secured grid promissory note issued on March 17, 2025.

Bold Canine had been unprofitable for several years because of poor financial management, equipment failures and unsuccessful expansion initiatives, including an attempt to enter the United States. A breakdown of its principal production equipment halted manufacturing for several days in September 2025, while an informal sale effort launched in early 2026 attracted interest but no offers. Prospective buyers cited the company’s leverage and sustained poor performance. Bold Canine failed to repay Kensington when the promissory note matured on March 17, 2026, and its founders advanced $50,000 on an unsecured basis after the company could not meet payroll in May.

The crisis escalated when Bold Canine’s landlord terminated its plant lease and locked the company out on June 12 after five months of unpaid rent. Kensington funded the arrears and guaranteed amounts relating to capital improvements under a lease reinstatement agreement, allowing access to be restored. Within days, however, Bold Canine reported that it could not make approximately $250,000 of payments to critical suppliers or meet approximately $130,000 of payroll due June 18. The plant shut down again, leaving raw ingredients and finished products at risk and prompting Kensington to deliver a demand and notice of intention to enforce security on June 17.

The company’s other reported obligations include approximately $525,000 owed to Bank of Montreal, approximately $69,000 owed to Business Development Bank of Canada, approximately $2.1 million owed to trade creditors, approximately $1.38 million owed to the Federal Economic Development Agency for Southern Ontario, approximately $300,000 owed to Saugeen Economic Development Corporation, approximately $130,000 of unpaid employee obligations and approximately $490,000 owed to Canada Revenue Agency.

TDB Restructuring was appointed as interim receiver over substantially all of the company’s property, excluding its inventory and food products, and Wholeframe Inc., through principal Domagoj Karadjole, was appointed as chief restructuring officer.

TDB and Wholeframe have since resumed and stabilized portions of the business, funded payroll and critical operating expenses, procured raw materials and liquid nitrogen, dealt with an urgent septic servicing issue and reduced the workforce. Kensington now seeks TDB’s appointment as full receiver, the continuation of Wholeframe as CRO and approval of a SISP intended to preserve the business as a going concern.

Counsel is Cassels for Kensington, Blaney McMurtry for Bold Canine, and Spetter Zeitz Klaiman for BMO.