Lastman’s Bad Boy nears bankruptcy, undergoing 'restructuring' proceedings

The Lastman's Bad Boy store is seen in London, Ont. in this image from October 2022. (Source: Lastman's Bad Boy)

Citing a “challenging economic environment,” Lastman’s Bad Boy Furniture has filed a notice of intention under the Bankruptcy and Insolvency Act as it undergoes restructuring proceedings.

According to KSV Advisory, a “boutique advisory, restructuring and valuations firm” based in Toronto, Bad Boy Furniture Warehouse Limited made the decision on Nov. 9 to begin restructuring proceedings after filing a ‘notice of intention to make a proposal’ (NOI) under the Bankruptcy & Insolvency Act.

KSV Restructuring Inc. is the trustee named under the NOI proceedings.

“The decision to commence these proceedings was taken after much deliberation; however, Bad Boy believed it was necessary in the context of a challenging economic environment driven by high interest rates, declining sales in the housing sector and a tight retail climate, particularly in the home furnishing sector,” a statement addressed to customers on KSV Advisory’s website reads.

The statement explains that due to the commencement of the NOI proceedings, Bad Boy customers who placed deposits for the future delivery of furniture or appliances will not receive refunds nor will their delivery be fulfilled.

However, customers who paid a deposit by credit card “should contact their credit card company to obtain a refund.”

It is unclear how the restructuring will impact the London store, located on Wharncliffe Road South.

In a statement to CTV News London on Sunday afternoon, Bad Boy said all of its stores continue to operate.

KSV Advisory added that Bad Boy expects to commence a liquidation sale in the near term.

Bad Boy’s website however is currently inactive.

The company has approximately 275 employees, including head office, warehouse and store employees.