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Bad boy furniture bankrupt

nobbie48 said:
The worst was Ontario Yachts decades ago. People had new boats on order with a deposit and .
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I think you may have the wrong boat company Ontario Yachts never went under , Dirk and Maria ran it from 1961 up until about 5 yrs ago when they sold to the Mcrea family who moved it back Hamilton again. It was in Oakville ( with Grampian and C&C ) on speers , then Hamilton, back to Burlington and now Hamilton again . The new owners are friends , they currently build the Etchells one design .


But on the subject of BadBoy , selling then not filing warranties seems pretty douchey. Wonder how many landlords on rented stores , suppliers , and service people are unsecured creditors and are getting screwed . 5 Mercedes on lease is peanuts on a fold up like this .




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matthew said:
As of two days ago they're still posting to Instagram
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It apparently happened Friday. Thursday it was business as usual, Friday, liquidator had control and bad boy as we knew it no longer existed. Due to logistics of canning everybody, maybe social media person still got some posts out on Friday.
 
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Torren said:
That was the name of the owner on the drawings.

Who's going to get their furniture? Noooooooobody!
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I’d say there’s a good chance furniture will get bad boy delivered. Receivers will fulfill outstanding order commitments providing the remaining funds cover the cost of goods.

Retailers like run 40% gross margin on furniture, so it’s likely any items that have less that 40% down will get delivered.
 
Mad Mike said:
I’d say there’s a good chance furniture will get bad boy delivered. Receivers will fulfill outstanding order commitments providing the remaining funds cover the cost of goods.

Retailers like run 40% gross margin on furniture, so it’s likely any items that have less that 40% down will get delivered.
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That assumes there is stock. That makes a lot of sense to clear out the warehouse efficiently as you already have people that want the stuff and will pay full retail for it. From the article posted from last year, bad boy was selling "in stock" items that had yet to be manufactured. I can't see a manufacturer shipping anything in.
 
GreyGhost said:
That assumes there is stock. That makes a lot of sense to clear out the warehouse efficiently as you already have people that want the stuff and will pay full retail for it. From the article posted from last year, bad boy was selling "in stock" items that had yet to be manufactured. I can't see a manufacturer shipping anything in.
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no tickee tickee, no laundry.
 
GreyGhost said:
It apparently happened Friday. Thursday it was business as usual, Friday, liquidator had control and bad boy as we knew it no longer existed. Due to logistics of canning everybody, maybe social media person still got some posts out on Friday.
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Funny I saw a bad boy tru k on Thursday at a house down the street. I thought it was odd as I rarely have seen any in this area. Now I guess I won't see any..
 
Jampy00 said:
Funny I saw a bad boy tru k on Thursday at a house down the street. I thought it was odd as I rarely have seen any in this area. Now I guess I won't see any..
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You should feel blessed that you were one of the last to see one in the wild.
 
GreyGhost said:
That assumes there is stock. That makes a lot of sense to clear out the warehouse efficiently as you already have people that want the stuff and will pay full retail for it. From the article posted from last year, bad boy was selling "in stock" items that had yet to be manufactured. I can't see a manufacturer shipping anything in.
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Bad Boy was taking deposits on undelivered goods. Manufacturers will sell to the receiver at a tiny margin to get WIP goods out of their hands, the receiver delivers and collects the outstanding balance for the manufacturer.

Furniture is high margin, deposits are likely small compared to the cost, so the goods should flow if deposits are less than 40%.
 
Mad Mike said:
Bad Boy was taking deposits on undelivered goods. Manufacturers will sell to the receiver at a tiny margin to get WIP goods out of their hands, the receiver delivers and collects the outstanding balance for the manufacturer.

Furniture is high margin, deposits are likely small compared to the cost, so the goods should flow if deposits are less than 40%.
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I'm not convinced the deposits went out to manufacturers. I suspect a lot were on the bad boy books but never sent out. No wip, no product, just money squandered.
 
GreyGhost said:
I'm not convinced the deposits went out to manufacturers. I suspect a lot were on the bad boy books but never sent out. No wip, no product, just money squandered.
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Deposits would not have gone to manufactures on a direct order basis, but the orders would have gone as the items were sold.

After getting a retailers order, manufacturers buy materials and put goods into production (WIP).

If a sofa costs the buyer $ 1000, bad boy would buy it for $600. If there is >=$600 outstanding, the receiver will buy the sofa, collect the remaining $600+ from the buyer, then pay the manufacturer unit by unit.

Manufacturer and consumer get whole, receiver doesn’t have to deal with tons of refunds, and possibly the business remains a going concern rather than liquidation.

This is the best outcome for all concerned.
 
Mad Mike said:
Deposits would not have gone to manufactures on a direct order basis, but the orders would have gone as the items were sold.
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You have more faith in that than I do. BB has sold items in the past that they did not possess and the manufacturer no longer produced (shown as in stock on BB website). I will be shocked if there isn't a huge shell game with lots of deposits and few orders to manufacturers.

I have no idea what the typical BB deposit looks like. If they were 50% deposits and there is no WIP, that item seems dead in the water as making it will cost more than the future money collected. If there were 10% deposits, your scheme seems viable. In a perverse twist, the larger your deposit, the less likely you will get furniture. If you paid, 100%, there is almost zero chance you will get it as receiver would rather sell furniture to someone else and generate revenue.

Cops were at barrie BB this weekend. Many angry customers. Some walked in with receipts and attempted to collect their paid for furniture off the floor. They were stopped as all inventory is under the control of the receiver. Even if you paid 100% and stock is there, you cannot get it. Maybe in the future if you are lucky, but I have very little faith as bad boy and receiver only care about revenue and unless the remainder of your transaction is cashflow positive, it is dead.
 
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GreyGhost said:
Cops were at barrie BB this weekend. Many angry customers. Some walked in with receipts and attempted to collect their paid for furniture off the floor. They were stopped as all inventory is under the control of the receiver. Even if you paid 100% and stock is there, you cannot get it. Maybe in the future if you are lucky, but I have very little faith as bad boy and receiver only care about revenue and unless the remainder of your transaction is cashflow positive, it is dead.
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If they storm his house will it be a hate crime?
 
Mikedezo44 said:
This article makes it seem like there is a little hope 🤷‍♂️ saying it's hoping to "restructure" and do away inefficient portions of their business. Seems like a big hole to dig themselves out of though.

www.cp24.com

Toronto, Canada & Global Breaking News – CP24

Most recent News News business news stories and video from CP24
www.cp24.com www.cp24.com
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It owes its suppliers many millions and it is having trouble sourcing more inventory. Go figure. Don't pay people and they stop shipping you more stuff.

It's gone. Between the fundamental issues and the bad will created by how people with deposits are treated, there is no light. Pretending they are restructuring lets them drag people along for a while longer in the hopes that creditors miss deadlines and disappear off the list of liabilities that get a cut.
 
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oioioi said:
I sure those 5 Mercedes's and probably my other assets will be handled "properly".

Citynews just pick this up 20 Min ago

toronto.citynews.ca

Bad Boy Furniture aiming to restructure business as it faces 'challenging' economy

Bad Boy Furniture Warehouse Ltd. is aiming to restructure its business through a filing made under the Bankruptcy and Insolvency Act.
toronto.citynews.ca toronto.citynews.ca
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Haha. That link included Mad Mikes plan. "Where possible, the company said it will work with customers to complete orders, if the cost of the merchandise is less than the balance owing, or if other arrangements can be made with the customer.". I was right. The smaller your deposit, the more likely you get your stuff. Big deposit and you are SOL.
 
Restructuring almost never works long term , suppliers/ landlords/ various creditors get on the " if we dont tip the boat over they can still row " mentality. But the same guys that put the boat up on the beach are still steering. It buys some time , but the sinking is enevitable .
 
Mad Mike said:
1. Cardholder asks their card issuer (bank) to “charge back” something on their credit card.

2. Bank qualifies chargeback, if it meets the time and other conditions, the bank attempts to reversed the charge. Paperwork flies, the bank claws back the funds and holds them until the dispute is resolved.

Chargeback requests for Buyer remorse, unreturned products, late or no delivery inside 45 days are usually declined.

3. Merchant can challenge the chargeback. Sales with contracts (insurance, utility bills etc) collection agreements, non delivery inside 60 days, goods not returned, and final sale agreements are generally ruled in merchants favour, merchant gets money back, bank charges interest to cardholder for dispute period and maybe a fee. As a merchant, I had 4 chargeback over 11 years - I won them all.

Merchants see clawbacks if they don’t challenge, cannot prove delivery, or cannot prove they had buyers permission to bill their card.

4. Once the dispute is settled (30-90 days) the funds are formed over to the merchant or cardholder.
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Point two, it’s actually the payment processor that manages the charge back. As long as the charge back fits the criteria, the charge is reversed from the issuing bank card that was used.

The payment processor is the company on the hook when they cannot access the funds from the retailer.

Moneris, Global Payments, Square, Chase and others are the companies that manage the process of disputes, charge backs.

The banks don’t get dinged. The processor does. Customers that made deposits by Interac, they are SOL. Different regs for Interac.
 
nakkers said:
Point two, it’s actually the payment processor that manages the charge back. As long as the charge back fits the criteria, the charge is reversed from the issuing bank card that was used.

The payment processor is the company on the hook when they cannot access the funds from the retailer.

Moneris, Global Payments, Square, Chase and others are the companies that manage the process of disputes, charge backs.

The banks don’t get dinged. The processor does. Customers that made deposits by Interac, they are SOL. Different regs for Interac.
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Point 2. True, the background banking interchanges are abstracted from the consumer, you can only deal with your bank. It’s your bank who qualifies and initiates a chargeback and the communications then makes the final decision You can’t deal directly with Moneris, Global, card Services etc and who holds the liability on an approved chargeback is of no concern to the consumer.
 
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