Factory Direct Winding Down Business After Nearly 30 Years

Discount retailer Factory Direct is liquidating its stores, with more than $10 million in retail, after filing bankruptcy in February.

The sales began Feb. 17, and apply across all 14 of the company’s physical stores in Ontario.

A.D. Hennick & Associates Inc. and Danbury Global Ltd. have been appointed to conduct the chain-wide liquidation sale of televisions, smartphones, tablets, computers, small and major appliances, heaters, air conditioners and other household products.

“Due to the most recent economic conditions, it’s becoming more apparent that businesses are having a difficult time managing operations,” says Alex Hennick, president of A.D. Hennick & Associates. “Factory Direct has been a consistent source of incredible deals for a long time and it is such a shame to see this almost 30-year-old, Canadian-owned discount retailer with hundreds of employees have to close its doors forever.”

TDB Restructuring Ltd. is the proposal trustee for RLogistics Limited Partnership, which does business as Factory Direct. The decision to liquidate follows the company’s court filing of a notice of intention under the Bankruptcy and Insolvency Act.

Since opening its first store in 1995, Factory Direct had grown to become one of Canada’s largest privately-owned discount retailers, with 24 stores and several hundred employees. But in recent years, since the onset of Covid-19, the company had experienced declining sales and increased overhead, in part due to the recent high inflationary environment.