People walk past a Bad Boy furniture store, in Brampton, Ont., on Nov. 13. The company says it intends to file for bankruptcy over debts and challenges obtaining inventory amid higher inflation and interest rates.Christopher Katsarov/The Canadian Press
Bad Boy, the furniture retailer founded by former Toronto mayor Mel Lastman and known for ads promising “nooobody” offered better deals, is facing a financial crisis and plans to restructure the business.
Late last week, Pickering, Ont.-based Bad Boy Furniture Warehouse Ltd. filed a notice of intention to file a proposal under the Bankruptcy and Insolvency Act, writing that the company owes money to many of its vendors. As a result, Bad Boy “is having significant challenges sourcing inventory,” which is affecting the retail business. It also published a notice to customers warning that people who have placed deposits on furniture and appliances will not be receiving their orders, or a refund from the company.
Like other retailers, Bad Boy has seen consumers pull back on spending as they feel the pinch of inflation and high interest rates. The “tight retail climate” has particularly affected the home-furnishing sector, the company wrote in the notice to customers, calling the restructuring a “very difficult decision.”
Bad Boy is wholly owned by a company controlled by Mr. Lastman’s son, Blayne Lastman, who revived the business in the early 1990s. It now has 12 stores in Ontario, as well as a business selling appliances to real estate developers and property managers. Bad Boy has roughly 275 employees.
“The Company is considering a liquidation sale in certain or all of its stores so that it can wind-down the inefficient portions of its business in an orderly manner,” a filing with the Ontario Superior Court of Justice stated.
As of Nov. 4, Bad Boy owed approximately $13.8-million to its unsecured creditors, including major appliance brands such as Whirlpool, Samsung, Electrolux and LG, and furniture suppliers such as Sofa by Fancy and Edgewood Furniture. It also owed $317,382 to RioCan Real Estate Investment Trust, which is the landlord for other Ontario stores in Mississauga, Burlington, Brampton and Kingston.
The company has received approximately $4.5-million in deposits from customers for future deliveries. Bad Boy is advising customers who have not received their orders to contact their credit-card providers for refunds. According to the filing, Bad Boy will complete some orders “if the cost of the merchandise is less than the balance owing.”
The crisis is a turning point for the company, which opened its first store in Toronto nearly 70 years ago. A young Mel Lastman went into business for himself after the furniture store he worked for went under, according to a video made by Bad Boy about its company history. Mr. Lastman opened Heather Hill Appliances in 1954, and changed the name to Bad Boy Appliances the following year.
He became known for brash marketing antics, including handing out money on a downtown Toronto street corner, or handing out free Thanksgiving turkeys (on leashes, still gobbling.)
By the early seventies, Mr. Lastman’s ambitions turned to politics. He was elected mayor of North York in 1973, and after continuing to run Bad Boy during his first three years in office, he sold his 40 stores in 1976.
Mr. Lastman’s son Blayne revived the brand in 1991, betting that he could rebuild the business even during a recession. Blayne and Mel Lastman often appeared in commercials together, reciting the slogan, “Who’s better than Bad Boy? Nooobody!”
After a COVID-19 boom in home improvements led to a spike in furniture sales, the industry as a whole has seen customers pull back, said retail-industry consultant Bruce Winder, and the current economic climate is even more incentive to put off big-ticket purchases. The industry has also seen upfront costs rise since the Canada Border Services Agency imposed new tariffs on some upholstered furniture from China and Vietnam two years ago.
And competition in lower-cost furniture is tighter than ever.
“If you look at companies like Ikea and Wayfair, they have a much greater affinity with younger customers, particularly those on a budget,” Mr. Winder said.
Adding to Bad Boy’s challenges now will be winning back trust with customers, he added.
“It creates a bit of a doom loop, because customers say, ‘Am I really going to buy my fridge, washer, dryer from Bad Boy? Weren’t they in bankruptcy? Who’s going to service it in one or two years?’” Mr. Winder said. “That’s going to stick with them, even if they come through this.”
TORONTO – Canada Goose Holdings Inc. says it has signed a deal that will result in the creation of its first eyewear collection.
The deal announced on Thursday by the Toronto-based luxury apparel company comes in the form of an exclusive, long-term global licensing agreement with Marchon Eyewear Inc.
The terms and value of the agreement were not disclosed, but Marchon produces eyewear for brands including Lacoste, Nike, Calvin Klein, Ferragamo, Longchamp and Zeiss.
Marchon plans to roll out both sunglasses and optical wear under the Canada Goose name next spring, starting in North America.
Canada Goose says the eyewear will be sold through optical retailers, department stores, Canada Goose shops and its website.
Canada Goose CEO Dani Reiss told The Canadian Press in August that he envisioned his company eventually expanding into eyewear and luggage.
This report by The Canadian Press was first published Sept. 19, 2024.
Almost seven years since news broke of an alleged conspiracy to fix the price of packaged bread across Canada, the saga isn’t over: the Competition Bureau continues to investigate the companies that may have been involved, and two class-action lawsuits continue to work their way through the courts.
Here’s a timeline of key events in the bread price-fixing case.
Oct. 31, 2017: The Competition Bureau says it’s investigating allegations of bread price-fixing and that it was granted search warrants in the case. Several grocers confirm they are co-operating in the probe.
Dec. 19, 2017: Loblaw and George Weston say they participated in an “industry-wide price-fixing arrangement” to raise the price of packaged bread. The companies say they have been co-operating in the Competition Bureau’s investigation since March 2015, when they self-reported to the bureau upon discovering anti-competitive behaviour, and are receiving immunity from prosecution. They announce they are offering $25 gift cards to customers amid the ongoing investigation into alleged bread price-fixing.
Jan. 31, 2018: In court documents, the Competition Bureau says at least $1.50 was added to the price of a loaf of bread between about 2001 and 2016.
Dec. 20, 2019: A class-action lawsuit in a Quebec court against multiple grocers and food companies is certified against a number of companies allegedly involved in bread price-fixing, including Loblaw, George Weston, Metro, Sobeys, Walmart Canada, Canada Bread and Giant Tiger (which have all denied involvement, except for Loblaw and George Weston, which later settled with the plaintiffs).
Dec. 31, 2021: A class-action lawsuit in an Ontario court covering all Canadian residents except those in Quebec who bought packaged bread from a company named in the suit is certified against roughly the same group of companies.
June 21, 2023: Bakery giant Canada Bread Co. is fined $50 million after pleading guilty to four counts of price-fixing under the Competition Act as part of the Competition Bureau’s ongoing investigation.
Oct. 25 2023: Canada Bread files a statement of defence in the Ontario class action denying participating in the alleged conspiracy and saying any anti-competitive behaviour it participated in was at the direction and to the benefit of its then-majority owner Maple Leaf Foods, which is not a defendant in the case (neither is its current owner Grupo Bimbo). Maple Leaf calls Canada Bread’s accusations “baseless.”
Dec. 20, 2023: Metro files new documents in the Ontario class action accusing Loblaw and its parent company George Weston of conspiring to implicate it in the alleged scheme, denying involvement. Sobeys has made a similar claim. The two companies deny the allegations.
July 25, 2024: Loblaw and George Weston say they agreed to pay a combined $500 million to settle both the Ontario and Quebec class-action lawsuits. Loblaw’s share of the settlement includes a $96-million credit for the gift cards it gave out years earlier.
Sept. 12, 2024: Canada Bread files new documents in Ontario court as part of the class action, claiming Maple Leaf used it as a “shield” to avoid liability in the alleged scheme. Maple Leaf was a majority shareholder of Canada Bread until 2014, and the company claims it’s liable for any price-fixing activity. Maple Leaf refutes the claims.
This report by The Canadian Press was first published Sept. 19, 2024.
Companies in this story: (TSX:L, TSX:MFI, TSX:MRU, TSX:EMP.A, TSX:WN)
TORONTO – TD Bank Group, which is mired in a money laundering scandal in the U.S., says chief executive Bharat Masrani will retire next year.
Masrani, who will retire officially on April 10, 2025, says the bank’s, “anti-money laundering challenges,” took place on his watch and he takes full responsibility.
The bank named Raymond Chun, TD’s group head, Canadian personal banking, as his successor.
As part of a transition plan, Chun will become chief operating officer on Nov. 1 before taking over the top job when Masrani steps down at the bank’s annual meeting next year.
TD also announced that Riaz Ahmed, group head, wholesale banking and president and CEO of TD Securities, will retire at the end of January 2025.
TD has taken billions in charges related to ongoing U.S. investigations into the failure of its anti-money laundering program.
This report by The Canadian Press was first published Sept. 19, 2024.
