Natura World to Restructure

December 26, 2011  by in UnCategorized   

By Home Furnishings Business in Bankruptcy on December 27, 2011

Organic and natural bedding vendor Natura World has filed a Notice of Intention for a proposal with the Superintendent of Bankruptcy in Canada to restructure its business.

The Cambridge, Ontario-based company also reached agreement with its lender, Callidus Capital of Toronto, to provide $7.8 million (Canadian) in new financing.

The company said there will be no disruption of service to its customers, vendors or suppliers, and noted that Natura World's improved cash position should enable it to improve relationships with those stakeholder groups.

Natura World USA, based in Texas, and NexGel are not affected by the filing.

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," said Rossdeutscher. "This strong infusion of capital will strengthen our current business and position the company for dynamic future growth."

He said the Notice of Intention was necessary for Natura to shed debt it had amassed three years ago when it made significant investments in new products, equipment and technologies, just prior the recession hitting in 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," Rossdeutscher said.