Bad boy furniture bankrupt

[Mad Mike]

It wouldn't surprise me to see Blayne Lastman pick up the leftovers and refire Bad Boy. He;'s bee i the game since 1991, despite the bad flack he knows the business. I'm guessing the last few years were pretty good and he took a bunch of money out. Boom, the construction and retail market busts and they weren't resilient enough to weather the storm.

Bad Boy is -- basically worthless, and the debt is large. Instead of throwing their own money in to keep it afloat, they may have used bankruptcy to jettison the debt, gambling that No Body would bid on the remaining business.

I think I read the parent company owes Bad Boy something like $1.4m, that's gonna sting.

 

[GreyGhost]

It wouldn't surprise me to see Blayne Lastman pick up the leftovers and refire Bad Boy. He;'s bee i the game since 1991, despite the bad flack he knows the business. I'm guessing the last few years were pretty good and he took a bunch of money out. Boom, the construction and retail market busts and they weren't resilient enough to weather the storm.

Bad Boy is -- basically worthless, and the debt is large. Instead of throwing their own money in to keep it afloat, they may have used bankruptcy to jettison the debt, gambling that No Body would bid on the remaining business.

I think I read the parent company owes Bad Boy something like $1.4m, that's gonna sting.

Link to first report is below. One of the assets is 1.5M owing from the parent company. Not sure how that plays out. What else does the parent own? It may just be another level of protection and they dissolve the parent too.

The books have goodwill as almost 3.5M. That's down to not a whole lot more than zero at this point.

Shareholders equity is minus 1.3M.

Preliminary unsecured creditors list has 14M on it.

The "third party" warranty company they use (and didn't pay for policies sold) is a related company. Extra skeezy.

https://www.ksvadvisory.com/docs/default-source/insolvency-case-documents/bad-boy/noi-proceedings/reports/bb---first-report-of-the-proposal-trustee---final.pdf?sfvrsn=1aca1cc6_3

 

[mimico_polak]

If the players do it right, bankruptcy is a nice and convenient reset button.

 

[GreyGhost]

If the players do it right, bankruptcy is a nice and convenient reset button.

No credit hangover like personal bankruptcy either. Also, if the game is played right, the period just before declaring can be one of the most personally profitable as you suck it dry with no need to consider tomorrow.

 

[Mad Mike]

No credit hangover like personal bankruptcy either. Also, if the game is played right, the period just before declaring can be one of the most personally profitable as you suck it dry with no need to consider tomorrow.

There is a credit hangover for corporations, might be shorter but it's quite painful during the recovery period. Neither suppliers and bankers make credit easy for the phoenix, and there's a good chance that A/R factorers will be the new pigs at the trough.

 

[GreyGhost]

There is a credit hangover for corporations, might be shorter but it's quite painful during the recovery period. Neither suppliers and bankers make credit easy for the phoenix, and there's a good chance that A/R factorers will be the new pigs at the trough.

Thats if bad boy continues. If douche kids furniture opens that bought the fixtures and leases from the receiver, they shouldn't be much different than a brand new corp.

 

[Mad Mike]

Thats if bad boy continues. If douche kids furniture opens that bought the fixtures and leases from the receiver, they shouldn't be much different than a brand new corp.

Banks and suppliers will still know Blayne Lastman as the guy in the stripes. Won't be easy for him.

If you bought the deal, it would be different, however they are still going to assess your background and capability before handing you a bunch of credit.

It's mostly suppliers that get burned in these deals.

I just got a bankruptcy notice from Cutler Forest Products today, it read about the same -- I'd preferred it if they just emailed me the notice then e-transferred me the $2bucks spent on printing and postage. No wood reading that mess. OOF!

 

[crankcall]

Cutler Forest Products again?? This is at least their second tip over . The massive building they rented on speers rd in Oakville , to move all the equipment in ( that they ‘bought’ from the last tip over) must have been 100k a month in rent. Oy vey .
They specialized in low end kitchen components and flat pack vanities and such , industry monsters at one point .


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