RenoRun has filed for and been granted an extension as part of its insolvency process as the startup says it’s seeing a high level of interest from potential buyers.
Earlier this week, Montréal-based RenoRun filed for an extension to the date by which it needs to present a proposal plan to its credits about next steps. The Superior Court in Québec granted the extension, allowing RenoRun until May 26 to file said proposal.
UPDATE: 26/04/2023: This week, RenoRun reportedly sent an email to customers informing them that the company will no longer accept new orders and is cancelling memberships.
According to court filings, RenoRun, through its insolvency trustee Deloitte, launched a sale process on March 29, shortly after filing for creditor protection. The deadline for offers was originally set to be April 24th. The court documents state that RenoRun has seen “a high level of interest” in purchasing RenoRun’s assets. As such, the company sought to extend the deadline for bids, with the filings stating that RenoRun is optimistic offers will be received by the bid deadline “and that a transaction can be completed
to the general benefit of its creditors and other stakeholders.”
The filings state that 20 parties expressed interest in buying RenoRun’s assets while 17 parties have signed non-disclose agreements that allow them to move forward with the bidding process. It is also stated that other parties have had discussions about a potential purchase with RenoRun’s management team. The filings do not state who these potential buyers are.
The company stated that its objective is to submit a transaction for court approval and close such transaction by no later than May 15.
The court documents show that RenoRun’s debt spans approximately $55 million.
RenoRun originally filed for creditor protection in late March after working to avoid the process through a monthslong pursuit of potential acquisition deals after not being able to secure bridge financing from its investors.
Multiple sources familiar with the company’s options confirmed to BetaKit at least two options that RenoRun was considering: both acquiring another startup or itself being acquired by a long-time industry partner. Those sources declined to name the potential acquirer, but the most likely candidates are the likes of Home Depot and Home Hardware, which started out as RenoRun competitors and turned into partners for material sourcing as the company expanded to new markets.
RenoRun’s journey to insolvency mirrors Tiger Global’s rise and fall (after the investor co-led RenoRun’s last funding round), as well as includes some Canadian investors that left RenoRun high and dry when the company needed them most.