The receiver of Robco Cabinets Ltd. has calculated that the Red Deer company’s debts exceed its assets by nearly $1.25 million.
A statement filed by Grant Thornton Ltd. indicates that the net book value of Robco’s assets is about $1.48 million. Creditors’ claims total more than $2.75 million, including $575,000 owed to secured creditors.
The $2.17 million claimed by unsecured creditors involves approximately 110 companies and individuals.
Thornton said in its statement that it had not yet determined if the net realizable value of Robco’s assets will be sufficient to provide payment to unsecured creditors.
Robco officially ceased operations on Nov. 18, although its Gasoline Alley shop closed at least a week earlier.
Grant Thornton was appointed receiver Nov. 21.
Founded by Rob Brunner in 1979, Robco moved into its 69,000-square-foot shop in Red Deer County in 2009. Much of the company’s businesses was done in the United States, where the housing market has collapsed.
Brunner said in a Nov. 21 statement that the challenges facing his company over the past two years had proven “too many to overcome” and he wanted to minimize the adverse local impact.