Duchesne et Fils Ltée granted initial CCAA protection and court-approved SISP

Duchesne et Fils Ltée obtained protection under the Companies’ Creditors Arrangement Act on January 15, 2026, with Justice David R. Collier of the Superior Court of Québec granting an initial order following a contested hearing held on January 14, 2026, at which the Court found the debtor insolvent and in need of immediate liquidity to continue operations. Ernst & Young Inc. was appointed as monitor, with FTI Consulting Canada Inc. appointed as information agent. The Court also approved interim financing provided by the debtor’s secured lenders, the Business Development Bank of Canada and the Royal Bank of Canada.

Founded in 1927, Duchesne et Fils operates as a Québec-based supplier in the building materials and lumber sector. The company owns and operates a manufacturing facility located in Yamachiche, Québec, in the Mauricie region, where it employs approximately 144 employees, and is a significant regional economic contributor.

Duchesne experienced two consecutive years of strong growth in 2022 and 2023, followed by a sharp deterioration in market conditions in 2024. The company attributed this reversal primarily to the imposition of US tariffs, which adversely affected both sales volumes and pricing, resulting in compressed margins. The company also cited sustained pressure from suppliers and a general decline in demand for the company’s products, further eroding liquidity.

Beginning in 2024, Duchesne implemented a series of operational and financial restructuring measures aimed at stabilizing the business and preserving viability. While those measures permitted the company to continue operating, they proved insufficient to address mounting obligations to secured lenders and trade creditors. As a result, Duchesne, in consultation with BDC and RBC, determined that a court-supervised restructuring under the CCAA was required to preserve value for stakeholders.

Concurrently with the initial order, the Court issued an order approving a court-supervised sale and investment solicitation process. The SISP is to be conducted by the monitor, with the assistance of EY-Parthenon as SISP agent, and in consultation with the debtor, the information agent, and the interim lenders.

Counsel is Fasken Martineau DuMoulin for Duchesne et Fils, Norton Rose Fulbright for the monitor, McCarthy Tétrault for Business Development Bank of Canada, and Davies Ward Phillips & Vineberg for Royal Bank of Canada.