Morris Marketing Group files NOI as CRM and print business restructuring advances

On November 14, 2025, Morris Marketing Group Inc. filed a Notice of Intention to Make a Proposal under section 50.4 of the Bankruptcy and Insolvency Act and appointed Dodick Landau Inc. as proposal trustee. The debtor subsequently filed a proposal on December 12, 2025, followed by an amended proposal on December 16, 2025, clarifying certain requirements for convenience class creditors. A meeting of creditors to consider the amended proposal is scheduled for January 5, 2026.

Morris is a British Columbia incorporated company with operations in Toronto and is a wholly-owned subsidiary of Elm Street Technology, LLC, a Delaware-based technology provider to the US real estate industry. Morris owns and operates IXACT Contact, a customer relationship management and automated marketing platform for real estate professionals, and until recently also operated a Toronto-based print facility providing mass mail marketing services across Canada. The print operations employed approximately 30 employees. In June 2025, Elm replaced Morris’ director with Keith Beeman, a representative of Elm, who now serves as chief executive officer and sole director.

In August 2025, Morris and Elm entered into a shared services agreement under which Elm provided management, finance, HR, IT, and other administrative services in exchange for management fees. Morris also granted Elm security to secure payment of those fees. That same month, Morris made a payment of approximately $2.9 million to Elm in respect of those obligations.

According to the proposal trustee, both the print and CRM businesses experienced sustained declines, with subscriber numbers falling for more than two years. The print operations generated negative cash flow for several years due to declining revenue and rising costs, leaving Morris unable to service its obligations. Broader weakness in the real estate sector intensified these pressures. Management advised that the company lacked sufficient cash flow since early 2020 to modernize its infrastructure, websites, and customer facing processes, resulting in outdated systems that impaired competitiveness.

Cost containment efforts implemented in early 2025 included a hiring freeze and a compensation freeze. Despite these measures, liquidity continued to deteriorate. Internally prepared financial statements indicate net losses of approximately $3.0 million in 2023, $245,517 in 2024, and $3.0 million for the period ending September 30, 2025, alongside total debt of approximately $2.8 million as of 2025.

Following the NOI filing, Morris commenced an operational restructuring led by its CEO. The company ceased its unprofitable print operations and plans to complete the wind-down by the end of January 2026, including termination of all remaining staff, liquidation of on-site assets, and vacating its Toronto premises. The IXACT Contact CRM technology is to be transferred to a cloud-based data center controlled by Elm, allowing that business line to continue.

The amended proposal establishes a single class of affected creditors, excluding secured creditors, post-filing claims, administrative expenses, and related-party claims, including Elm’s claim of approximately $5.8 million for unpaid management fees. The proposal provides for a $1 million dividend pool to be funded by Morris and Elm on the effective date. After establishing a $40,000 bankruptcy reserve and satisfying priority claims, convenience class creditors will receive up to $4,000 each, with remaining funds distributed pro rata to other affected unsecured creditors.

The trustee’s liquidation analysis estimates recoveries of approximately 38.5% in a bankruptcy scenario, compared to approximately 40.3% under the proposal for affected creditors, excluding related-party claims. The trustee reports that the debtor has sufficient liquidity to fund operations and professional costs through February 14, 2026, based on the cash flow forecast.

Reconstruct LLP is counsel to the proposal trustee, while Morris is represented by Bennett Jones LLP.