Engagements

Barrymore Furniture Co. Ltd.

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Status Updates

On January 17, 2020, Barrymore closed its retail location and filed an assignment in bankruptcy. Farber was appointed as Bankruptcy Trustee by the Official Receiver (the “Bankruptcy Trustee”), subject to affirmation by the unsecured creditors at the first meeting of creditors which is scheduled for February 6, 2020 at 10:00AM at A. Farber & Partners Inc., LIT, 150 York Street, Suite 1600, in Toronto, Ontario.

On January 21, 2020, the Bankruptcy Trustee obtained an order (the “January 21, 2020 Court Order”) authorizing the Bankruptcy Trustee to sell Barrymore’s assets and, if necessary, disclaim the lease for the Barrymore’s premises, before the first meeting of creditors and the appointment of inspectors. A copy of the January 21, 2020 Court Order is posted below.

Background

On November 29, 2019, Barrymore Furniture Co. Ltd. (“Barrymore” or the “Company“) filed a Notice of Intention to Make a Proposal (the “NOI”) under Section 50.4 of the Bankruptcy and Insolvency Act¸ R.S.C 1985, c. B-3, as amended (the “BIA”) and A. Farber & Partners Inc. (“Farber”) was appointed as trustee (the “Proposal Trustee”).

The primary purpose of the NOI was to provide Barrymore with temporary relief from creditors to allow it to carry on business through the holiday season and canvas the market for potential buyers of its business and/or assets.

On December 9, 2019, the Company brought a Motion to the Ontario Superior Court of Justice (Commercial List) (the “Court“) for a Court Order seeking an extension to the time within which the Company is required to make a Proposal.  The Court issued an Order granting the extension to February 12, 2020 (the “Extension Order”). A copy of this Extension Order is posted below.

On January 16, 2020, the Proposal Trustee issued a Notice of Material Adverse Change (the “MAC Notice”) in respect of the Company’s cash flow and business operations. A copy of the MAC Notice is posted below.

Sales Process

The Proposal Trustee is assisting Barrymore in conduct a marketing and sales process to invite offers for the purchase of all of the right, title and interest in Barrymore’s assets, property and undertakings (the “Assets”).

The Assets include the following:

  • Inventory – Finished goods and raw materials
  • Trade Account Receivables and other account receivables
  • Real Property Lease
  • Manufacturing fixtures and equipment
  • Customer lists and dealer network
  • Website and Intellectual Property
  • Store signage

Interested parties are invited to submit offers directly to the Proposal Trustee. Ultimately, the successful offer would be subject to an asset purchase agreement, which in turn would be subject to Court-approval.

Enquiries for potential purchaser qualification and receipt of a nondisclosure agreement to allow data room access (upon execution and acceptance) should be made to A. Farber & Partners Inc. to the attention of:

Noah Litwack
T: 416.496.3719
E: nlitwack@farbergroup.com

Megha Sharma
T: 647.796.6034
E: msharma@farbergroup.com

Creditor Enquiries

For creditor enquiries, please contact:

Geanina Schmidt
T: 416.496.3753
E: gschmidt@farbergroup.com

The case updates and court filed documents on this website are for information purposes only and you should consult your financial or legal adviser if you have any questions or concerns about your rights or obligations. Additional updates on the status of these proceedings may become available in the future. 

Documents

Bankruptcy Documents

Proposal Documents

Court Reports

Motion Materials

Court Orders and Endorsements