Quality Rugs of Canada Limited et al., the largest flooring contract business in Canada, obtained CCAA protection on August 25, 2023. The business, which employs approximately 130 people, is headquartered in Vaughan, Ontario, but has leased facilities across Canada. The company suffered financially as a result of the COVID-19 pandemic and the Ontario residential construction sector strike from May 1 to June 15, 2022. It is currently indebted to Ninepoint Canadian Senior Debt Master Fund, whose agent is Waygar Capital, in the amount of approximately $50.6 million. Under the initial order, the company and Ironbridge Equity Partners have 30 days to negotiate and seek court approval of a definitive purchase agreement. RSM is the Monitor, represented by Goodmans. Gardiner Roberts is counsel for the company, Davies is on for Ironbridge, Aird & Berlis for Waygar, Osler for Mohawk Carpet Distribution, Lawson Lundell for Taiga Building Products, DLA Piper for Macro-Universe Enterprises, Devry Smith Frank for CG Eight Cumberland, Lax O’Sullivan for A&M (which conducted the pre-filing SISP that led to Ironbridge’s offer), Koskie Minsky for LIUNA Local 183 and BLG for Housing One 10th Avenue Corporation.

By: Dina Milivojevic