West Island snow removal service Bo Pelouse abruptly closed its doors on Dec. 29, leaving thousands of customers scrambling to find alternative arrangements.
The Pointe-Claire business officially filed for bankruptcy on Jan. 20.
On Tuesday, the first meeting of the company’s creditors took place in Dorval. A large crowd attended the meeting including Bo Pelouse owner Marc Guindon.
Lawyers of former clients were also at the hearing.
READ MORE: Bo Pelouse officially files for bankruptcy
“The way Bo Pelouse shut down its operations without notice, warning or explanation caused a feeling of frustration and anger, frankly, that I think manifested itself today in some of the questions that were imposed today on some of the creditors” said Dimitri Maniatis, a lawyer representing a former client of the company.
Maniatis argues that the closing of Bo Pelouse also caused psychological damage.
“There were many seniors in the room today and I feel sorry for what took place today because there was stress, anxiety and moral damage, frankly, that were cause to them aside from monetary prejudice that they suffered,” Maniatis stated.
“My client was left with no ability to get the snow cleared. This is a question of mobility for some people.”
The lawyers are trying to help the former clients get some sort of reimbursement, but Joesph Perlini, another lawyer on site, admits the closing of the snow removal company is a loss for everyone involved.
“It’s a sad day, not only for the people but also for the individual,” said Perlini.
“After 35 years of apparently very, very good service, this had to end up this way.”
A preliminary trustees report to creditors indicates Guindon’s company was experiencing financial difficulties.
Revenues from the current year were being used to make payments on past debts.
The report states that the situation reached a point where the company was unable to meet its financial obligations, finding itself late with payments as well as wages.
Guindon says he tried to sell the business to an employee, but it fell through.
Lawyers for Guindon say it wasn’t his intention to shut down operations and that he was trying to re-mortgage his house in the hopes of finishing the season.
Investigations into Bo Pelouse’s operations continue.
It is not known whether clients of the now-defunct company will be reimbursed for services that were not rendered.