Centre de Rénovation Home Hardware, Receivership

Centre de Rénovation Home Hardware, a group of companies that form part of the Home Hardware network of stores in Québec, were placed into receivership on November 20 on application by National Bank of Canada, owed over $19.3 million.

National Bank provided credit facilities to the companies between 2020 and 2022.

In 2022, the financial performance of the companies was significantly lower than previous years, leading to a liquidity crisis at the beginning of 2023 and an inability of the companies to meet their obligations to National Bank.

In March 2023, National Bank was informed that the companies had accumulated arrears of approximately $2 million owed to Home Hardware, resulting in Home Hardware temporarily ceasing delivery of goods to the companies. At the same time, National Bank was informed that certain of the companies had used their line of credit to finance unauthorized capital expenditures.

In 2023, certain of the loans also matured without repayment, and the companies defaulted on various other terms of their credit agreements. The parties then entered into a forbearance agreement, which was extended three times to April 30, 2024. National Bank offered the companies a fourth extension to the forbearance period, but the companies refused to agree to National Bank’s terms.

FTI is the receiver.

Counsel is McCarthy Tétrault for National Bank, Osler for the receiver and Norton Rose for Home Hardware.