Inscape Group Granted CCAA Protection by Ontario Court
On January 12, 2023, Inscape Corporation, Inscape (New York) Inc. and Inscape Inc. (collectively the “Inscape Group”), manufacturers and distributors of office furniture to customers located in the United States and Canada, commenced restructuring proceedings in the Ontario Superior Court of Justice under the Companies’ Creditors Arrangement Act (the “CCAA”). The Court granted the Inscape Group CCAA protection and appointed Alvarez & Marsal Canada Inc. as court-appointed monitor.
The Inscape Group has faced a number of challenges as the result of the continued impact of the COVID-19 pandemic, including but not limited to, a dramatic decline in order volumes and average order size, attributable to a slower than expected return-to-office timeline as well as a transition to a virtual office environment. The Inscape Group also suffered from a number of supply chain issues, resulting in a shortage of production materials and subsequent delays to the completion of existing customer orders. The primary objective of the CCAA proceedings is to allow the Inscape Group to conduct a wind-down and liquidation of its assets and business in an orderly fashion.
Aird & Berlis represents Alvarez & Marsal Canada Inc. in its capacity as the court-appointed monitor in the Inscape Group CCAA proceedings with a team that includes Steven Graff, Kyle Plunkett and Matilda Lici (Financial Services).