Famous furniture retailer Bad Boy Furniture has officially declared bankruptcy. The Toronto-area company filed a notice of intent under the Bankruptcy and Solvency Act last November. They cite business restructuring as the reason.
That same month, an Ontario court approved Bad Boy’s application to begin raising cash by selling their stocked products. It also gave time till January 23 to submit the restructuring proposal.
Brian Gelman, senior managing partner at certified insolvency trustee firm Albert Gilman Inc., told CTV News Toronto that a process under the Bankruptcy and Insolvency Act is a notice of intent. It gives your lender 30 days or more to consider whether to make an offer to resolve the financial problems you’re having.
But Bad Boy fails to do so. At least that’s what the document filed on January 24 says.
Bankruptcy trustee KSV Restructuring Inc., appointed by Bad Boy, said the debtor company failed to provide a cash flow statement or proposal within the time limit after filing the notice of intent. Because they didn’t do that in time, the company was effectively bankrupt. This means that the Bad Boy will be obliged to hand over their assets and property to a trustee to pay off creditors.
Bad Boy’s debt amount is 1 crore 37 million dollars. Of this, Whirlpool Canada will receive $2.3 million and Samsung Appliances will receive $840,921. Apart from this, the company has also collected 4.5 million dollars from customers in the name of furniture collection. It was not delivered till the time of filing of Notice of Intent.