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 B. Riley Farber Inc. (“B. Riley Farber”) was appointed as trustee (the “Proposal Trustee”).
On January 17, 2020, Barrymore ceased operations and filed an assignment in bankruptcy. B. Riley 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 10:00 a.m. at B. Riley Farber, LIT, 150 York Street, Suite 1600, in Toronto, Ontario.
On January 21, 2020, the Bankruptcy Trustee obtained an order (the “January 2020 Order”) from the Ontario Superior Court of Justice (Commercial List) (the “Court”) 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 2020 Order is posted below.
The Bankruptcy Trustee has engaged Infinity Asset Solutions as agent to conduct a public auction sale of all inventory and equipment located at Barrymore’s operating facility, located at 1168 Caledonia Road, Toronto, Ontario. The online public auction sale will take place on February 6, 2020. Details on the auction sale are available on infinityasssets.com
The Bankruptcy Trustee is also reviewing offers to purchase the intellectual property of Barrymore. The deadline for submission of offers is February 3, 2020. Enquiries for potential purchaser qualification and receipt of a nondisclosure agreement to allow data room access (upon execution and acceptance) should be made to B. Riley Farber to the attention of:
E: [email protected]
Background – NOI
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 Court for an 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 the 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 During NOI
The Proposal Trustee assisted Barrymore in conducting a marketing and sale 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 included 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 were invited to submit offers directly to the Proposal Trustee. Ultimately, a successful offer, if any, would be subject to an asset purchase agreement, which in turn would be subject to Court-approval.
For creditor enquiries, please contact:
E: [email protected]
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.
- Motion Record (returnable January 21, 2020)
- Book of Authorities (returnable January 21, 2020)
- Factum (returnable January 21, 2020)
- Motion Record (returnable December 9, 2019)