Duvaltex, a leading entity in Contract Textiles and Protective Textiles renowned for its commitment to sustainability, recently sought protection under the Companies' Creditors Arrangement Act (CCAA) at the Superior Court of Québec. This strategic move aims to restructure its finances while ensuring ongoing operations. Concurrently, the company has filed under Chapter 15 in the United States to complement the Canadian proceedings. Alain Duval, President and CEO, highlighted the exhaustive review of strategic alternatives before resorting to the CCAA filing, underscoring a developed restructuring plan to navigate current market challenges.

The decision stems from the COVID-19 pandemic's lasting impact on sales, especially within the contract textile segment, exacerbating the company's financial strain due to decreased sales, profitability, and accumulated debt from previous acquisitions and consolidation efforts. The restructuring under CCAA is designed to avoid business interruptions, maintain delivery schedules, and negotiate financial obligations under court protection.

Despite these challenges, Duvaltex has made notable advancements in operational efficiency, showing positive results and generating value. The company remains optimistic about its future, bolstered by a strong leadership team, brand recognition, loyal customer base, and an innovative approach towards sustainable industry transformation.

Duvaltex will utilize its credit facilities for liquidity during the restructuring phase, with business operations proceeding as normal. Ernst & Young Inc. has been appointed as the Monitor, with legal representation by Lavery de Billy LLP in Canada and Venable LLP in the United States.