A company that supplies textbooks to schools across Canada has filed for bankruptcy.
Searchfast Systems Limited – a Mississagua, Ontario-based company that operated the Canadian School Book Exchange and BookPower – filed for bankruptcy on February 27. The company bought and sold books and learning resources to primary and secondary schools across the country.
“Searchfast operated for over 50 years, however, due to various factors, the company became unable to meet its obligations as they fell due and subsequently filed for bankruptcy,” a statement from court-appointed insolvency practitioner BDO Canada Limited explained.
The Canadian School Book Exchange used the consignment model to sell used books and textbooks. According to BDO Canada, the company had approximately 13,500 consignment creditors who are still owed over $3 million, including individuals, schools and organizations across Canada.
Anyone who wants to get money back must submit proof of claim online by March 25. For instructions and updates, see BDO Canada website. The first creditors’ meeting will take place on March 28th.
However, the chances of actually receiving payment may not be good – court documents show that as of February 26, the company claimed $81,000 in assets and $3.1 million in liabilities.
“Please note that due to the Company’s records and the expected limited realizations from the Company’s assets and the associated level and ranking of creditors’ claims, distribution of funds to ordinary unsecured creditors (including consignment creditors) is not expected the bankrupt company,” BDO Canada’s statement said.
Individual claims currently range from a few dollars to more than $1.5 million.
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