Bestar files for Chapter 15 in Delaware bankruptcy court

WILMINGTON, Del. — Bestar Inc., part of Canadian company E-Solutions Furniture Group, filed a Chapter 15 petition in the U.S. Bankruptcy Court for the District of Delaware on May 4.

In April, E-Solutions revealed it had ceased manufacturing operations and was expected to present a motion to appoint a receiver over the company’s assets, which includes Bush Furniture and Bush Business Furniture. PricewaterhouseCoopers Inc. was appointed receiver in Canada and is acting as the foreign representative in Delaware.

The Chapter 15 filing serves as a recognition and cooperation mechanism for a “foreign main proceeding.” By filing it here, Bestar is asking the U.S. court to recognize and support the Canadian proceeding, rather than reorganize the company under U.S. bankruptcy protection.

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Last month, the company said it and its lenders explored alternatives such as restructuring or selling the business, but no viable solution was identified to allow E-Solutions to continue operating or to sell the business. The company’s financial position has worsened significantly since 2021, and it has faced additional pressure since 2024, mainly attributed to U.S. tariffs, post-pandemic reductions in consumer demand, increased competition from offshore competitors and ongoing cash constraints.

The Chapter 15 filing shows hundreds of creditors listed, including numerous logistics and freight firms as well as active litigation matters involving the U.S. Consumer Product Safety Commission and YRC Inc., and others.

The Canadian order, also filed May 4 in Quebec, authorizes the receiver to sell the debtors’ personal property and inventory, and provides access to up to $4 million in interim financing from Federation des caisses Desjardins du Quebec, Bank of Montreal, Bank of Nova Scotia, National Bank of Canada and the Toronto-Dominion Bank.