Woodlore International and Ébénisterie St-Urbain secure CCAA protection amid financial turbulence and legal challenges

Company

Woodlore International Inc.

Law Firm / Organization
McCarthy Tétrault LLP

Company

Ébénisterie St-Urbain Ltée

Law Firm / Organization
McCarthy Tétrault LLP

Company

Raymond Chabot

Law Firm / Organization
Stikeman Elliott LLP

Bank

HSBC Bank of Canada

Law Firm / Organization
Davies Ward Phillips & Vineberg LLP

Company

Fiera Capital

Law Firm / Organization
Norton Rose Fulbright Canada LLP

Company

IQ

Law Firm / Organization
Lavery

Company

BDC

Law Firm / Organization
Miller Thomson LLP
Law Firm / Organization
Blaney McMurtry LLP

Company

William James Phillips, Sr.

Law Firm / Organization
Langlois Lawyers
Law Firm / Organization
Minden Gross LLP

Company

William James Phillips, Jr.

Law Firm / Organization
Langlois Lawyers
Law Firm / Organization
Minden Gross LLP

Woodlore International Inc. and Ébénisterie St-Urbain Ltée, family-owned businesses in kitchen, bathroom cabinets, and office furniture manufacturing, sale, and distribution, received CCAA protection on May 12. The companies faced liquidity issues recently, exacerbated by a significant drop in orders from key clients like RONA, Réno-Dépôt, and Lowe's Canada, and pressures from Woodlore's acquisition. This acquisition also led to a major lawsuit from one of Woodlore's biggest historical clients, further straining finances. HSBC, their lender, halted electronic funds transfers on May 10, affecting payments to suppliers and salaries for 341 employees. Despite these challenges, the companies reported a strong order volume and backlog, indicating potential for recovery through operational restructuring. Raymond Chabot was appointed as Monitor, with legal representation from various firms: Stikeman Elliot for the Monitor, McCarthy Tétrault for the companies, Davies for HSBC, Norton Rose Fulbright for Fiera Capital, Lavery for IQ, Miller Thomson and Blaney McMurtry for BDC, and Langlois and Minden Gross for William James Phillips, Sr. and Jr.

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