Bankrupt Flooring Biz Owes Customers Big Bucks

A now-defunct flooring company in Kelowna, B.C., owes more than $1 million to stiffed companies.

According to local online news source InfoNews.ca, more than three dozen companies have sued Woody’s Hardwood Flooring Ltd. for unreceived paid orders.

In July, a judge ruled in favour of Weninger Construction and Design Ltd., which filed against the flooring company twice. Weninger had contracted Woody’s to provide custom wood flooring on two separate projects, providing deposits of $23,300 and $26,100, respectively.

Revelstoke, B.C.-based Appenzell Construction Inc. also filed against Woody’s for the return of a nearly $13,000 deposit, which amounts to half the cost of a flooring job.

Joining the list of creditors is Kelowna contractor MJI Contracting Ltd., which is seeking a $31,350 award from Woody’s. Part of that is a $15,000 deposit, with the remainder for work done by another company after MJI claims the wood flooring installed by Woody’s was deficient and not cut properly. Woody’s disagreed in court but did offer to pay approximately $1,000 to MJI. The matter has yet to be resolved and is expected to go to trial.

The customers that went to court aren’t the only ones claiming Woody’s owes them. Bankruptcy documents show construction company Highmark Framing is owed $260,000, followed by $170,000 claimed by the Canada Revenue Agency.

Woody’s formally filed for bankrupty July 31. MNP Ltd. has been appointed the licensed insolvency trustee.

Just before filing, the company dropped off its shop equipment, valued at approximately $100,000, at Lower Mainland auction facility Able Auctions. The auction house netted approximately $56,300 in the sale of the equipment and leftover flooring inventory. MNP will distribute the remains of the monies, after Able Auctions pays for trucking expenses.

Woody’s had been in business since 1994. It was run by Ken Petersen and his wife Marlene, who is listed as a director. Ken has filed for bankruptcy himself, so it’s unclear how much will be repaid to out-of-pocket customers.