Natura World to restructure business, get new financing
Company files notice under Bankruptcy and Insolvency Act
Furniture Today Staff -- Furniture Today, December 27, 2011
CAMBRIDGE, Ontario — Natural and organic bedding producer Natura World said today it has filed a notice of intention to restructure its business under Canada's Bankruptcy and Insolvency Act, and has reached an agreement with its lender to provide C$7.8 million in new financing.
The company said the financing from Callidus Capital of Toronto will create an opportunity for Natura to solidify its position as a natural and organic sleep products brand.
The company said there will be no disruption of service to its customers, vendors or suppliers. Officials said the improved cash position will enable it to improve relationships with these stakeholder groups.
Natura World USA, based in Texas, and the company's NexGel brand are not affected by the filing with the Office of the Superintendent of Bankruptcy in Canada.
The company said it expects the reorganization process to conclude expeditiously. Under the new business plan, Natura World President Ralph Rossdeutscher will maintain his majority ownership stake in the company.
"The decision to file this reorganization plan was made to strengthen our business and to solidify Natura as the leading natural and organic sleep products brand in the world. This strong infusion of capital will strengthen our current business and position the company for dynamic future growth," said Rossdeutscher.
He said the notice of intention filing process is a necessary step for Natura to shed debt it had amassed three years ago when it made significant investments in new products, equipment and technologies, just before the recession hit the United States, the company's largest market.
"While we have reduced operating expenses significantly over the past two years and our current business run rate is actually profitable, we could not fully right the ship and pay down the debt we amassed several years ago, without going through this reorganization process," he added.