$25 million in furniture has to be liquidated from Bad Boy

If you’re looking to save some money on a furniture purchase it could be a good time to buy an iconic Ontario retailer Bad Boy Furniture will be clearing out $25 million worth of inventory starting this week.

News broke last week that Pickering-based Lastman’s Bad Boy had filed a Notice of Intention (NOI) for a “restructuring,” citing “a challenging and economic environment.”

The move left some customers unable to get refunds and led to questions about the future of the company’s 12 locations across Ontario and approximately 275 employees.

The retailer will be blowing out its stock starting on Friday in what’s being called an “unprecedented liquidation” by Infinity Asset Solutions now that an Ontario court has granted Bad Boy Furniture Warehouse Ltd. permission to begin clearing out its stores.

“The decision to hold the liquidation sale is part of Bad Boy Furniture’s strategic restructuring plan providing customers with a unique chance to enjoy extensive savings on a wide range of brand name furniture, electronics and home decor items,” said Infinity Asset Solutions, which will oversee the total liquidation of Bad Boy’s entire $25-million inventory.

Documents filed with the Superior Court of Justice say sales will occur at the brand’s 12 stores for the first 30 days of its liquidation period.

After that period, some stores will close and consolidate while others remain open. Under the court order, the liquidation sales must end across the company’s entire network by Feb. 15.

The permission Bad Boy got to liquidate its stores comes as the company is aiming to restructure its business through a filing made under the Bankruptcy and Insolvency Act. KSV Restructuring Inc. is the proposal trustee for Bad Boy Furniture.

The documents show Bad Boy had been struggling to stay out of arrears, owing “to many of its vendors, including substantially all appliance vendors” and most of its furniture suppliers.

Representatives reportedly failed to contact clients awaiting deliveries and neglected to provide notification of the delays or the overall situation.

Bad Boy said the move was necessary because it is operating in a “challenging” economic environment. Since making the filing, Bad Boy has laid off a “small” number of staff and plans to make further cuts.

Lastman’s Bad Boy was founded by former Toronto Mayor Mel Lastman in 1990 with its flagship store located at 1119 Kennedy Road in Scarborough. It has since expanded to include locations in Mississauga, Brampton, Hamilton and North York among others and is now wholly-owned by the founder’s son, Blayne Lastman.

– With files from The Canadian Press