More than $1M claimed after Kelowna flooring company goes bust

An Okanagan flooring company owes more than $1 million to dozens of companies after abandoning jobs earlier this year.

Woody's Hardwood was targeted in multiple civil suits as construction companies sought to get the flooring they had paid for, but owner Ken Petersen stopped responding to their inquiries. Those that went to court aren't the only ones claiming Woody's owes them.

Bankruptcy documents show the company owed more than $1 million to various companies and the federal government before accountant trustees at MNP Ltd. took over Woody's finances.

The largest share is claimed by construction company Highmark Framing at $260,000, followed by $170,000 claimed by the Canada Revenue Agency.

There are more than three dozen claimants in total aiming to get their funds repaid from the company, whose director is named as Petersen's wife Marlene, according to bankruptcy documents.

Just before filing for bankruptcy, Woody's dropped off its shop equipment at Lower Mainland auction facility Able Auctions. It was valued at around $100,000.

MNP contacted the auction company, which netted around $56,300 in the sale of leftover flooring inventory and dozens of pieces of equipment. Once Able Auctions takes its cut and pays trucking expenses, MNP will distribute what remains.

That amount is far below what claimants say Woody's owes them, and Petersen has filed for bankruptcy himself, so it's not clear how much they will be repaid.

The company's bankruptcy claims come after multiple judgements in small claims court ordering Woody's to repay more than $50,000 to a Kelowna construction company last month.

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