Gesco Industries Inc., Gesco GP ULC, and Tierra Sol Ceramic Tile Ltd., CCAA

Gesco Industries Inc., Gesco GP ULC, and Tierra Sol Ceramic Tile Ltd., the leading national independent specialty distributor of floor covering solutions in Canada, employing almost 200 individuals, obtained CCAA protection on May 19. Like other distribution companies, Gesco has been impacted by various macroeconomic factors (COVID-19, rising interest rates, increase in energy costs, etc.). These factors have caused disruptions in global supply chains and increased delivery costs, ultimately leading to an erosion in gross margins and operating losses. Among other debt, Gesco owes approximately $23.5 million in secured debt to BNS and other lenders and approximately $6.37 million in secured debt to EDC. Stikeman Elliott is counsel for Gesco. PwC was appointed Monitor and is represented by Cassels. McMillan is counsel for BNS, Davies is counsel for Ironbridge, and BDO is counsel for Roynat.

By: Dina Milivojevic