Popular Canadian furniture store Bad Boy has filed a notice of intention (NOI) to make a proposal under the Bankruptcy and Insolvency Act to begin a restructuring process.
According to a notice filed by KSV Restructuring Inc., a licensed insolvency trustee named in the proceedings, the NOI was filed on Nov. 9.
“The decision to commence these proceedings was taken after much deliberation,” an advisory by KSV read.
“Bad Boy believed it was necessary in the context of a challenging economic environment driven by high interest rates, declining sales in the housing sector and a right retail climate, particularly in the home furnishing sector.”
The advisory said Bad Boy customers who recently placed deposits for future deliveries of furniture or appliances will not be getting refunds from the company.
“We regret to inform you that as a result of the commencement of the NOI proceedings, Bad Boy is unable to refund those deposits or to complete those purchases,” the advisory stated.
Those customers who purchased by credit card are being told to contact their credit card company to get a refund, KSV said. It did not mention anything for those customers who paid by debit or cash.
Bad Boy’s website is down with an error message that reads “service temporarily unavailable.”
The furniture store was founded by late former Toronto mayor Mel Lastman and was taken over by his son Blaine Lastman. There are around a dozen stores in Ontario.
However, Bad Boy still remains open for business during the process and it’s expected there will be a liquidation sale from certain stores, the KSV advisory said.
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