HFI Flooring Inc
| Company type | Public |
|---|---|
| Industry | Flooring distribution |
| Founded | 1998 |
| Defunct | 2001 |
| Headquarters | Canada |
Area served | Canada |
| Products | Wood flooring products, flooring accessories |
HFI Hardwood Flooring Inc held the distinction of being Canada's inaugural nationwide distributor specializing in hard surface flooring. With locations in Calgary, Edmonton, Montreal, Toronto, Vancouver, and Winnipeg, it emerged as the country's foremost distributor of wood flooring products.
The company represented leading flooring manufacturers including Robbins, Harris Tarkett, Formica Flooring, MetroFlor, Gammapar, Permagrain, and Searcy Flooring. Additionally, HFI offered a range of accessory products from brands such as BonaKemi, Dura Seal, Stanley Bostich, Primatech, Norton Abrasives, Woodwise, 3M, Lagler Hummel Sanding Equipment, and Clarke Flooring Machines.
Court action
In 1995, HFI successfully challenged a ruling by the Deputy Minister of National Revenue under section 67 of the Customs Act. The decision revised tariffs on wood flooring items, lowering expenses and enhancing product affordability. This outcome played a key role in expanding wood flooring's market penetration throughout North America.
Initial public offering
HFI completed its initial public offering (IPO) on May 21, 1998, offering common shares at $0.30 each and raising CN$300,000 from public investors. Coupled with a $3.5 million private placement and contributions from management, the total capital influx surpassed $5 million to facilitate business growth.
Financial statements
Following the IPO, HFI was obligated to publicly release its financial performance and operational details.
Trading order and ban
On March 31, 2001, Canadian Securities authorities imposed a Cease Trading Ban on HFI Hardwood Flooring Inc. due to its failure to submit an interim financial report covering the nine months ended March 31, 2001. This directive suspended all trading activities involving HFI’s securities until compliance was achieved.
A cease trade order (CTO) is a regulatory measure that halts trading when companies or individuals do not meet required filing or compliance standards.
Loan agreements
On December 28, 2000, Canadian securities regulators disclosed that HFI had defaulted on its loan obligations. The asset-based lender, Congress Financial Corporation (Canada), formally notified HFI Flooring Inc. (CDNX: HFI) of default status resulting from non-compliance with Congress’ net worth covenant.
Companies’ Creditor Agreement Act
HFI sought protection under the Company Creditor's Arrangement Act (CCAA) on January 30, 2001, while preparing a restructuring proposal for its creditors. The Ontario Supreme Court issued a protective order enabling HFI to reorganize operations without interruption. On February 1, 2001, HFI clarified that the CCAA filing was a strategic decision aimed at safeguarding ongoing business activities during restructuring and avoiding creditor interference. This process was distinct from bankruptcy or receivership and intended to allow focus on sales recovery.
On March 26, 2001, Domcor acquired HFI’s assets.