Duvaltex, an office furniture textile manufacturer and protective textiles supplier, announced that it has sought protection under the Companies’ Creditors Arrangement Act (CCAA) before the Superior Court of Québec in order to provide the company with time to restructure its finances, while continuing normal operations.
The company has initiated a corresponding filing in the United States under Chapter 15 to recognize and give effect to the Canadian filing.
“We conducted an exhaustive review of strategic alternatives prior to determining that a CCAA filing was the best mechanism,” says Alain Duval, Duvaltex president and CEO. “We have developed, and are in the process of implementing, a robust restructuring plan with the goal of being a viable organization that will be able to face the challenges posed by current market conditions.”
Duvaltex continues to face repercussions of the COVID-19 pandemic on its sales, particularly in the contract textile segment. The decline in sales and profitability, coupled with the accumulated debt from acquisitions and consolidation initiatives, has put the company in a challenging financial situation.
By undertaking a restructuring process under the CCAA, Duvaltex will be able to ensure that there are no business interruptions and that deliveries continue as planned. This process gives the company the necessary protection of the court to negotiate current and future financial obligations, while continuing to execute its strategy to drive profitable growth.
In recent months, Duvaltex has implemented measures to enhance operational efficiency. As a result of these measures, the company’s operations have been more efficient.
“We have every confidence that we will emerge a much stronger organization,” Duval says. “We have many strengths, including a seasoned leadership team and talented employees, strong brand recognition, loyal customers and a focus on constant innovation to accelerate the sustainable transformation of the textile industry.”
Duvaltex will use its available credit facilities to provide adequate liquidity to operate while it restructures its debt. The Company is conducting business as usual. All orders will continue to be shipped as promised.
For more information visit: www.ey.com/ca/duvaltex