Densi, the Canadian distributor of imaging supplies and parts for business copiers, printers, multi-function printers and other imaging equipment, filed a notice of intention to file a proposal (the “NOI”) under Section 50.4 (1) of the BIA on the 6th March 2017. KPMG Inc. is acting as the Trustee.
Densi was established 1979 and represents around 200 manufacturers and has 8000 products and more than 1100 customers in 20 countries. The majority of Densi’s revenues are generated through its online B2B store.
In their filing, Densi cited a downturn in the imaging aftermarket, especially in their Canadian home market where increased foreign competition in the local market and bypassing intermediaries such as Densi. The situation has been compounded by the impact three years of currency variations between the US and Canadian dollar.
Densi also cites that their 2015 rebranding that involved the redesign of its product packaging to attract more business had been a costly and unprofitable exercise.
On March 30th, the Court granted an extension of delay file its proposal until May 23rd, 2017. In papers seen by The Recycler, four parties are interested in acquiring all or part of Densi’s assets.
Densi creditors are owed more than CDN$3.5 million (US$2.6 million / €2.3 million) and include Atrix International, China Eternal Copiers, Clover Technologies, Fuji Electric and Future Graphics, Raven Industries, Tomoegawa.