DARTMOUTH, NOVA SCOTIA - The Royal Bank of Canada (RBC) will receive more than $530,000, the final proceeds that bankrupt Scanwood received from IKEA for its final batch of wood dressers.
The seized money has been held in trust since Scanwood went out of business in April 2011, according to a report by the Chronicle Herald, citing a June 20 hearing of a Nova Scotia Supreme Court.
IKEA was the only customer for Scanwood's high-tech plant that once employed some 235 people. The 220,000-square-foot facility manufacturer approximately 1 million chest of drawers for IKEA each year. The company was $24 million in debt and exhausted credited extensions when it closed its doors.
The Scanwood plant was sold to Tour Tech East, a TV and film production company, for $3.5 million. Equipment was sold at auction.
Rich Christianson is Associate Publisher and Editor at Large of Woodworking Network. During his 25+ years covering the wood products industry, Rich has toured hundreds of manufacturing plants throughout North America, Europe and Asia. His reporting has covered everything from the state of the industry and impact of wood imports to technology and environmental issues. In his current capacity he is responsible for editing the daily Woodworking Network Update newsletter and coordinating events including the annual Cabinets & Closets Conference & Expo and Canada’s biennial Woodworking Machinery & Supply Expo.
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