DB Ottawa Inc. filed a statement with the Office of the Superintendent of Bankruptcy Canada Tuesday showing $1.1 million in liabilities and $683,585 in assets.
The chain offers members discount prices in exchange for paying club fees that can be in the thousands of dollars. It offers furniture, appliances, home improvement accessories and other items for its customers.
Representatives from trustee Raymond Chabot Inc. are getting phone calls from concerned members of the store about back orders. Notices to creditors are going out today.
"What I'm telling the members that I do speak to is there are orders that are in the warehouse, ready for pickup," said Stanley Loiselle, a trustee with Raymond Chabot who is handling the file.
Negotiations are ongoing with the corporate office of DirectBuy. There is no timeline yet concerning when the office would open, but the minimum time it would take is about a week, he said.
There are a small number of secured creditors in the filing, he said, which includes equipment and computer system lessors. Employees are entitled to renumeration under the federal government wage earner protection program.
According to the Better Business Bureau of Ottawa's website, DirectBuy's Ottawa branch is not a member and it has had 41 complaints against the business in the past three years.
DirectBuy's corporate office did not immediately respond to a request for comment.