BuildDirect, a Vancouver-based online marketplace for home improvement products, was this week granted creditor protection as it seeks to recapitalize or arrange a sales transaction, according to a report by the Canadian Press.
BuildDirect, which is working with court-appointed monitor PwC Canada, has negotiated a US$15 million loan from investors to continue operations while it plans its financial restructuring, the report said.
Vice President of Finance John Sotham was quoted as saying the company has generated significant revenue but has not been profitable.
BuildDirect was founded in 1999 by President and CEO Jeff Booth and Executive Officer Rob Banks. Sotham reported the resignation of Booth last week, the Canadian Press said.
BuildDirect has been funded by BDC Capital, BMO Asset Management, Difference Capital, Mohr Davidow Ventures and OMERS Ventures, among other investors.
Photo courtesy of BuildDirect