Lastman's Bad Boy financial troubles leaves customers out in the cold

Customers of a longstanding Canadian furniture chain claim they're being left out as the company's financial woes intensify.

Earlier this week, Lastman's Bad Boy filed a Notice of Intention (NOI) to make a Proposal under the Bankruptcy and Insolvency Act, giving notice that the company would be restructuring its business affairs and debts.

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"We regret to inform you that as a result of the commencement of the NOI proceedings, Bad Boy is unable to refund those deposits or complete those purchases," read a company-wide memo to customers that went out on November 9.

That has left a sour taste in the mouth of Barrie resident Shawn Gibson. Gibson ordered $2400 worth of furniture from Bad Boy last week, but the delivery did not show up on its intended date.

"Yesterday we waited, we called them, we said where is it, and they were kind of giving us the run around on the phone," Gibson told CTV News. "So I said I'm just going to come over. I came over, and they gave me the sheet of paper that said that the store might be going bankrupt."

A statement from KSV Advisory, which represents Bad Boy, said filing an NOI will allow the company to restructure its debts to avoid bankruptcy.

"Bad Boy believed it was necessary in the context of a challenging and economic environment driven by high-interest rates, declining sales in the housing sector and a tight retail climate, particularly in the home furnishing sector," it read.

But customers like Gibson ask why they can't get their purchased items or refunded.

"Our bank said no with debit that they can't help us," he said. "They tried telling me that again today. I went over with them that they are actually withholding my property; I have paid for it; it's here."

Lisa Holbrook also visited the store on Sunday. Holbrook purchased a bed for her grandson over 2 months ago and is also dealing with a similar situation.

"They informed me that they were restructuring and that anyone who had purchased anything before Thursday would not be getting their furniture," Holbrook said. "I don't understand how they can be selling our furniture that I see in there and telling us that we can't take our own furniture that we've paid for."

Bad Boy said it will remain open during this process and expects to commence a liquidation on sale from certain stores.