The Coast Appliances retail chain has been placed under creditor protection following an application by Bank of Montreal, acting as administrative agent for a lending syndicate.

The chain is owned and operated by Coast Wholesale Appliances Inc. and Coast Holdings (GP) Ltd., the subjects of the B.C. Supreme Court creditor-protecton order.

The B.C.-based independent distributor and retailer had 17 showrooms and nine distribution centres across five provinces at the time of filing, along with an e-commerce platform. The company employed about 300 people, including roughly 79 at its Calgary head office in leadership and support roles, with portions of the workforce unionized. Several locations have already closed, including stores in Vaughan, Ont.; Burlington, Ont.; Edmonton, Calgary and Abbotsford, B.C., while the company also struggled to meet lease obligations tied to its Caledon, Ont., distribution centre.

Court materials cite a sustained decline in consumer spending driven by higher living costs, global conflicts, tariffs and supply-chain disruptions, alongside a post-pandemic housing slowdown linked to rising interest rates. Coast’s reliance on residential construction further weighed on performance as new development activity slowed, while commercial demand weakened amid project delays.

The lenders said the company’s position deteriorated through covenant breaches, borrowing-base deficiencies and missed milestones under repeated forbearance agreements, with nearly $69 million owing as of March 31, excluding interest and fees.

PwC, engaged as financial advisor in October 2024, explored restructuring options and ran a targeted sale process in early 2026, but efforts failed after equity thresholds were not met and only one non-viable offer emerged. The filing was accelerated after all directors and the CEO resigned in mid-April, leaving the company without governance.

A comeback hearing will seek approval for a liquidation process and an agency agreement with Hilco Merchant Solutions ULC to conduct store-closing and asset sales, with the lending syndicate providing debtor-in-possession financing.

PwC has been appointed monitor with enhanced powers, with Fasken acting for BMO, McCarthy Tétrault for the monitor and Cassels for Hilco.

Photo: Coast Appliances