It’s official, Bad Boy furniture is bankrupt.
This comes after the Toronto-area company filed a notice of intention under the Bankruptcy and Insolvency Act back in November, with an aim to restructure its business.
Later that month, an Ontario court allowed the business to begin its liquidation sales and gave them a deadline of Jan. 23 to file its restructuring proposal.
However, bankruptcy trustee KSV Advisory says Bad Boy failed to file its proposal in time and is now deemed to have made an assignment which essentially means the company is now bankrupt.
So, what does this mean for customers?
Well, Bad Boy has a whopping debt of $13.7 million to creditors. On top of that, it also racked up $4.5 million in deposits from customers for furniture on items that were not delivered when the notice of intent was submitted.
A total of $13.7 million was owed to creditors at the time the Notice of Intention to Make a Proposal was submitted under the Bankruptcy & Insolvency Act.
READ MORE: Popular Canadian furniture chain, Bad Boy Furniture, files for bankruptcy
Now Toronto reached out to Bad Boy for comment but did not hear back by publication deadline.
However, a public notice to customers was posted by KSV Advisory indicating that customers will not be getting their money back.
“Customers of Bad Boy may have placed deposits for the future delivery of furniture and/or appliances. 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 notice read.
The notice goes on to say that customers who paid a deposit by credit card should contact their credit card company to obtain a refund, but the notice did not mention any advice for those who paid by cash or debit.
Customers who have concerns regarding their deposits are encouraged to send an email to customers@nooobody.com or to badboy@ksvadvisory.com.
Bad Boy was founded in 1955 by the late Toronto mayor Mel Lastman. Later in 1991, his son Blayne took over the business and opened a location in the city’s furniture strip. His first store was on Kennedy Road in Scarborough.
He then turned the furniture store into a powerhouse and expanded the business into 40 locations across Canada.
