Duchesne announces that it has initiated a restructuring under the Companies’ Creditors Arrangement Act (CCAA). The objective of these proceedings is to provide Duchesne with sufficient time to implement a financial and operational restructuring in order to find a sustainable solution to the liquidity crisis it is facing, which stems from a combination of factors, including competition from “dumping” by various emerging markets, a decline in demand for construction materials, and the imposition of tariffs.
After a thorough review of all available options, and following consultations with its legal and financial advisors, Duchesne determined that it was in the best interest of the company and all its stakeholders to file under the CCAA to protect itself from its creditors.
The Court’s initial order provides for a stay of proceedings in relation to creditor claims and the exercise of certain contractual rights in order to offer the necessary protection for Duchesne to implement operational and financial restructuring measures, in consultation with its advisors. In this regard, the Court has approved a formal investment and sale solicitation process aimed at securing additional financing, selling assets, or a combination of both. This process will be conducted by EY-Parthenon Corporate Finance Inc.
The Court’s initial order also authorizes temporary funding to allow Duchesne to continue its operations during the restructuring process and implement the necessary restructuring measures. Customers will continue to be served, and teams will remain engaged.
“Our priority is to ensure business stability and protect Duchesne’s core value, including its jobs and its relationships with partners,” said Christian Dauphinais, President of Duchesne.
The Court has appointed Ernst & Young Inc. as Monitor in the CCAA proceedings to collaborate with Duchesne and report to the Court during the restructuring. Duchesne will remain responsible for its day-to-day operations. Duchesne is committed to completing the restructuring process in a timely and efficient manner and to keeping its stakeholders informed of developments, in compliance with legal provisions. Duchesne remains firmly rooted in its community and fully committed to pursuing its activities in a responsible manner.
The Monitor, Ernst & Young Inc., will maintain a website at www.ey.com/ca/duchesne where information regarding these restructuring proceedings will be available. You may also contact the Monitor by email at [email protected] or by phone at 1-855-294-9737.
About Duchesne
Founded in 1927, Duchesne is a trusted partner for renovation professionals, hardware stores, distribution centres, and specialized manufacturers across Canada and the United States. The company, which employs more than 140 people, designs and manufactures essential products such as nails, wires, mesh, and polyethylene solutions, maintaining high quality standards at every stage, from production to shipping. For more information, visit the page "Who are we?".
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