- Company remains open for business
QUÉBEC CITY, QC, Dec. 14, 2023 /CNW/ - Duvaltex ("Duvaltex" or the "Company"), a global leader in Contract Textiles and Protective Textiles, and a pioneer in sustainable textiles, announced today that it has sought protection under the Companies' Creditors Arrangement Act (CCAA) before the Superior Court of Québec in order to provide the Company with time to restructure its finances, while continuing normal operations. The Company has initiated a corresponding filing in the United States under Chapter 15 to recognize and give effect to the Canadian filing.
"We conducted an exhaustive review of strategic alternatives prior to determining that a CCAA filing was the best mechanism," stated Alain Duval, President and CEO of Duvaltex. "We have developed, and are in the process of implementing, a robust restructuring plan with the goal of being a viable organization that will be able to face the challenges posed by current market conditions."
Duvaltex continues to face repercussions of the COVID-19 pandemic on its sales, particularly in the contract textile segment. The decline in sales and profitability, coupled with the accumulated debt from acquisitions and consolidation initiatives, has put the Company in a challenging financial situation.
By undertaking a restructuring process under the CCAA, Duvaltex will be able to ensure that there are no business interruptions and that deliveries continue as planned. This process gives the Company the necessary protection of the Court to negotiate current and future financial obligations, while continuing to execute its strategy to drive profitable growth.
In recent months, Duvaltex has implemented substantial measures to enhance operational efficiency, and has achieved significant progress and concrete results. As a result of these measures, the Company's operations are already generating positive value.
"We have every confidence that we will emerge a much stronger organization," added Mr. Duval. "We have many strengths, including a seasoned leadership team and talented employees, strong brand recognition, loyal customers and a focus on constant innovation to accelerate the sustainable transformation of the textile industry."
Duvaltex will use its available credit facilities to provide adequate liquidity to operate while it restructures its debt. The Company is conducting business as usual. All orders will continue to be shipped as promised.
The Court has appointed Ernst & Young Inc. to act as Monitor. Lavery de Billy LLP and Venable LLP represent the company as outside Canadian and US legal counsel, respectively. The Monitor has established a website at www.ey.com/ca/duvaltex where further information on the Duvaltex financial restructuring will be posted. The Company committed to communicating transparently with all stakeholders throughout this process and will announce updates regarding its ongoing operation plans, as appropriate.
Duvaltex is North America's largest office furniture textile manufacturer and a leading supplier of protective textiles. While enhancing people's well-being and safety, Duvaltex specializes in the design and production of advanced textile solutions and sustainable textile materials. Duvaltex is committed to changing the way products are made, used and reused, creating value for future generations. For more information, visit www.duvaltex.com.
SOURCE Duvaltex
Source: Joel Sergerie, Marketing Director, Duvaltex, 418-227-9897, ext. 2200, [email protected]
Share this article