Battered by Asian imports, a surging Canadian dollar and slumping US economy, two major Canadian juvenile furniture makers have filed for bankruptcy protection in the past month. Morigeau and Shermag, both based in Quebec, are major players in the nursery furniture market here in the U.S.
The latest casualty is Morigeau, which specializes in high-end furniture and has been one of the top-rated companies in our book for several years. Founded in 1945, Morigeau entered the U.S. market in 1983 and slowly built itself into one of the market’s premium brands.
Morigeau’s sales manager, Ian Sacks, tells BABY BARGAINS the company plans to continue normal operations as it reorganizes under bankruptcy protection. Sacks did say that shipments were halted last week before the filing Friday, but the company hopes to start shipping again shortly. We hope to blog more details on the Morigeau bankruptcy shortly.
Morigeau’s key pitch was style and quality—all furniture is made in Canada. That decision clearly came back to haunt the company, as imported goods from China undercut Morigeau’s prices by a huge margin. A surging Canadian dollar also made production in Canada much more expensive, further eroding margins. Sacks refused to say how far sales have fallen, but he pointed out the entire industry is in a slump.
The story is much the same at Shermag, which is a maker of glider rockers and nursery furniture (sold under its own name and Chanderic, it’s upper-end division) that filed for bankruptcy protection May 6 in Canada. Shermag has seen its sales plunge 40% in the past year. Shermag has over C$30 million in debt and has been closing plants in Canada and moving production to Asia during the past year.
Update 7-15-08: Morigeau has started shipping again, according to a notice the company has sent out to readers.
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Please be advised that Morigeau Furniture, DID NOT file for bankruptcy. Morigeau has taken steps to work with their creditors, and continue to design and produce, high quality children’s furniture; exclusively in NORTH AMERICA.
A copy of the Creditor Agreement Notice will be emailed to Baby Bargains, under separate cover.
Morigeau has ALREADY commenced shipments to our exclusive distribution channel of INDEPENDENT RETAIL DEALERS.
I would be happy to answer any questions, comments, or concerns at my email address:
Ian Sacks
National Sales Manager
[email protected]
Thank you for your attention to this matter.
Sincerely,
Ian Sacks
Please be advised that Morigeau Furniture, DID NOT file for bankruptcy. Morigeau has taken steps to work with their creditors, and continue to design and produce, high quality children’s furniture; exclusively in NORTH AMERICA.
A copy of the Creditor Agreement Notice will be emailed to Baby Bargains, under separate cover.
Morigeau has ALREADY commenced shipments to our exclusive distribution channel of INDEPENDENT RETAIL DEALERS.
I would be happy to answer any questions, comments, or concerns at my email address:
Ian Sacks
National Sales Manager
[email protected]
Thank you for your attention to this matter.
Sincerely,
Ian Sacks
Let us preface this by saying that we have known Ian for 15 years and he has always been a straight shooter when it comes to discussing Morigeau. He is definitely one of the “good guys” in the baby biz. Note that he included his email address for consumers to contact—-and I’m sure he’ll respond to any queries.
That said, Ian’s statement above is . . . well, not accurate.
Without debating the finer points of Canadian bankruptcy law, Morigeau did in fact declare bankruptcy June 12. Here is the statement from the company:
“On June 12th, 2008, the directors of Meubles Morigeau Ltée and Morigeau-Lépine Inc. have obtained an ordonnance of protection from the Court under the terms of the Companies’ Creditors Agreement Act. ” (The company’s entire statement is reprinted below).
The “Companies Creditors Agreement Act” is part of the Canadian bankruptcy law. Here is a link for an explanation:
http://bankruptcy.cooley.com/2008/03/articles/business-bankruptcy-issues/north-of-the-border-reorganization-under-canadas-companies-creditors-arrangement-act/
So, we stand by our blog entry as accurate. And we’re happy to hear that Morigeau has started shipping again (shipments were halted just before the filing). Feel free to post anything you are hearing from your Morigeau dealers here!
Alan & Denise Fields
authors, BABY BARGAINS
—
On June 12th, 2008, the directors of Meubles Morigeau Ltée and Morigeau-Lépine Inc. « MORIGEAU » have obtained an ordonnance of protection from the Court under the terms of the Companies’ Creditors Agreement Act. This ordonnance will allow MORIGEAU to pursue its activities in a favorable context, thus allowing it to reorganize it’s activities.
MORIGEAU is a family operated business located at Saint-François de la Rivière du Sud. The company has been crafting and distributing high-quality children’s furniture since 1945. MORIGEAU uses mostly hard wood for it’s manufacturing process, and it’s products are defined as high end and are well known throughout North America for their quality, beauty and design. MORIGEAU employs between 125 to 175 mostly skilled workers and is considered as one of the important employers in the region.
In 2004, MORIGEAU completed an important modernization process which required investments of over seven million dollars. Further to this investment, MORIGEAU now disposes of a plant equipped with the latest and best technology, making it one of the top plants in Canada.
Unfortunately, the U.S. economic slow down, the ferocious Asian competition and moreover the unfavorable rate of exchange have all contributed in reducing MORIGEAU sales. It is, therefore, imperative for MORIGEAU to reorganize it’s activities at this time.
In order to turn things around MORIGEAU will capitalize on it’s state of the art modern plant in order to increase volumes emanating from new partners. MORIGEAU firmly beleives that such volumes will lead to profitability. MORIGEAU is presently undergoing negociations with several potential partners.
Mallette Trustee & Administrators through it’s authorized representative Mr Phillippe Buzzetti will act as controller as per the Companies Creditors Agreement Act. Mr Buzzetti with the directors of MORIGEAU and other professionals will assist MORIGEAU in the elaboration of the reorganization process. All information related to the court proceedings and the follow up on the file are available at http://www.mallette.ca
MORIGEAU wishes to thank in advance it’s employees, customers and suppliers and generally all it’s partners for their cooperation within the framework of this reorganization procedure. The directors of MORIGEAU intend to do everything in their power to secure the perennity of the company. It is needless to say, that the cooperation of its partners, at this particular time is priceless.
Let us preface this by saying that we have known Ian for 15 years and he has always been a straight shooter when it comes to discussing Morigeau. He is definitely one of the “good guys” in the baby biz. Note that he included his email address for consumers to contact—-and I’m sure he’ll respond to any queries.
That said, Ian’s statement above is . . . well, not accurate.
Without debating the finer points of Canadian bankruptcy law, Morigeau did in fact declare bankruptcy June 12. Here is the statement from the company:
“On June 12th, 2008, the directors of Meubles Morigeau Ltée and Morigeau-Lépine Inc. have obtained an ordonnance of protection from the Court under the terms of the Companies’ Creditors Agreement Act. ” (The company’s entire statement is reprinted below).
The “Companies Creditors Agreement Act” is part of the Canadian bankruptcy law. Here is a link for an explanation:
http://bankruptcy.cooley.com/2008/03/articles/business-bankruptcy-issues/north-of-the-border-reorganization-under-canadas-companies-creditors-arrangement-act/
So, we stand by our blog entry as accurate. And we’re happy to hear that Morigeau has started shipping again (shipments were halted just before the filing). Feel free to post anything you are hearing from your Morigeau dealers here!
Alan & Denise Fields
authors, BABY BARGAINS
—
On June 12th, 2008, the directors of Meubles Morigeau Ltée and Morigeau-Lépine Inc. « MORIGEAU » have obtained an ordonnance of protection from the Court under the terms of the Companies’ Creditors Agreement Act. This ordonnance will allow MORIGEAU to pursue its activities in a favorable context, thus allowing it to reorganize it’s activities.
MORIGEAU is a family operated business located at Saint-François de la Rivière du Sud. The company has been crafting and distributing high-quality children’s furniture since 1945. MORIGEAU uses mostly hard wood for it’s manufacturing process, and it’s products are defined as high end and are well known throughout North America for their quality, beauty and design. MORIGEAU employs between 125 to 175 mostly skilled workers and is considered as one of the important employers in the region.
In 2004, MORIGEAU completed an important modernization process which required investments of over seven million dollars. Further to this investment, MORIGEAU now disposes of a plant equipped with the latest and best technology, making it one of the top plants in Canada.
Unfortunately, the U.S. economic slow down, the ferocious Asian competition and moreover the unfavorable rate of exchange have all contributed in reducing MORIGEAU sales. It is, therefore, imperative for MORIGEAU to reorganize it’s activities at this time.
In order to turn things around MORIGEAU will capitalize on it’s state of the art modern plant in order to increase volumes emanating from new partners. MORIGEAU firmly beleives that such volumes will lead to profitability. MORIGEAU is presently undergoing negociations with several potential partners.
Mallette Trustee & Administrators through it’s authorized representative Mr Phillippe Buzzetti will act as controller as per the Companies Creditors Agreement Act. Mr Buzzetti with the directors of MORIGEAU and other professionals will assist MORIGEAU in the elaboration of the reorganization process. All information related to the court proceedings and the follow up on the file are available at http://www.mallette.ca
MORIGEAU wishes to thank in advance it’s employees, customers and suppliers and generally all it’s partners for their cooperation within the framework of this reorganization procedure. The directors of MORIGEAU intend to do everything in their power to secure the perennity of the company. It is needless to say, that the cooperation of its partners, at this particular time is priceless.
Is there a link to the actual court document. I placed an order online for furniture on 5/24/08 and I am not receiving any responses from the company regarding my order. I have filed a dispute with the credit card company as they are not responding and I can only assume that I will never receive my furniture.
Is there a link to the actual court document. I placed an order online for furniture on 5/24/08 and I am not receiving any responses from the company regarding my order. I have filed a dispute with the credit card company as they are not responding and I can only assume that I will never receive my furniture.
To the webmaster:
I do not work for Morigeau. However, I agree that your blog title is false. The Companies’ Creditors Arrangement Act, as you should be able to discern from its title, provides a structured procedure to allow a company to reorganize itself without being pursued by creditors. The CCAA can be distinguished from the Bankruptcy and Insolvency Act. Guess what companies do under the BIA? Declare bankruptcy.
At any rate, this distinction may be moot as I was told today that Morigeau has now in fact declared bankruptcy.
To the webmaster:
I do not work for Morigeau. However, I agree that your blog title is false. The Companies’ Creditors Arrangement Act, as you should be able to discern from its title, provides a structured procedure to allow a company to reorganize itself without being pursued by creditors. The CCAA can be distinguished from the Bankruptcy and Insolvency Act. Guess what companies do under the BIA? Declare bankruptcy.
At any rate, this distinction may be moot as I was told today that Morigeau has now in fact declared bankruptcy.
I am very sad to say that Morigeau has closed.
They will be missed.
I am very sad to say that Morigeau has closed.
They will be missed.
This sucks. We placed our order for nursery furniture from this company 5 weeks ago, and were told nothing about the fact that they were in financial distress. Today, we found out they closed for good and we’re SOL with under 9 weeks to go to get a crib. Needless to say my wife and I are pretty upset.
This sucks. We placed our order for nursery furniture from this company 5 weeks ago, and were told nothing about the fact that they were in financial distress. Today, we found out they closed for good and we’re SOL with under 9 weeks to go to get a crib. Needless to say my wife and I are pretty upset.
And to S. Kalinowski… its all moot at this point, but in the U.S., our bankruptcy law does exactly the same thing you describe as the point of the CCAA. It’s called a chapter 11 reorganization, and the court order is exactly the same as what’s called an ‘automatic stay’ here in the U.S. Bankrupties are not all chapter 7 filings, which are liquidations.
Anyway… I’m off to look for a replacement crib now.
And to S. Kalinowski… its all moot at this point, but in the U.S., our bankruptcy law does exactly the same thing you describe as the point of the CCAA. It’s called a chapter 11 reorganization, and the court order is exactly the same as what’s called an ‘automatic stay’ here in the U.S. Bankrupties are not all chapter 7 filings, which are liquidations.
Anyway… I’m off to look for a replacement crib now.
Mike G. – I am in much the same boat as you are, placed an order at the end of August and kept being told repeatedly by Ian Sacks that there were no issues, as late as 11/5. Fortunately we paid for our order via credit card so we are filing a dispute through our credit card company to get our money back as we never received our furniture order.
Regards,
Jennifer Grant
Cincinnati, OH
Mike G. – I am in much the same boat as you are, placed an order at the end of August and kept being told repeatedly by Ian Sacks that there were no issues, as late as 11/5. Fortunately we paid for our order via credit card so we are filing a dispute through our credit card company to get our money back as we never received our furniture order.
Regards,
Jennifer Grant
Cincinnati, OH