RLogistics Limited Partnership (dba factorydirect.ca), NOI

RLogistics Limited Partnership (dba factorydirect.ca), a discount retailer which operates 14 locations in Ontario along with a strong online retail presence, filed an NOI on February 7, listing approximately $3.5 million in liabilities, including approximately $1.6 million in termination and severance pay owed to employees.

The company experienced declining sales and increased costs that led to its inability to carry on in the normal course of operations. High economic inflation and increased minimum wage requirements resulted in significantly increased overhead costs.

In addition, much of the company’s inventory is non-essential goods (i.e., televisions, mobile phones, etc.), and the demand for these goods has decreased due to the general economic slowdown in recent months. The company’s competition has also increased due to online marketplaces and wholesalers entering the direct-to-consumer business.

TDB Restructuring Limited (formerly RSM Canada Limited) is the proposal trustee.

Counsel is Chaitons for RLogistics.

By: Dina Milivojevic