Following the release of some publicly available financial records, a local retirement home is putting any fears and rumours to rest before they have a chance to materialize. In the fall of last year, the Garden Villa Retirement Residence in Chesterville became the subject of a court appointed “receivership” with a creditor due to outstanding debts. The residence’s management is reassuring the public that everything is under control, and nothing is likely to change, except for the better.
The receivership is a matter of public record. On October 26, 2023, Meridian Credit Union Limited filed the motion against Garden Villa, and the receivership was endorsed by Justice C. Hackland. The receivership order grants BDO Canada Limited – a debt solutions company – control of the Garden Villa’s operations and assets, but this is up to the discretion of BDO.
BDO’s Notice of Receivership – also a document of public record – lists the assets and debts of the Garden Villa, and states “the Receiver [BDO] intends to monitor the retirement home operations until it conducts a sales process and realizes on the assets of Garden Villa.”
While this situation may seem dire for the Garden Villa, it can actually be part of the financial restructuring of any business, and does not necessarily bode poorly for the retirement home. Garden Villa management was contacted to request clarification on the situation.
“Garden Villa has not declared bankruptcy and continues to operate while under court supervision,” said Kyle Simourd of Better Group, which manages the retirement home.
“The Receiver has financial oversight of the business and is working to restructure the financial affairs of the business,” Kyle added. “A key objective of the restructuring has been and continues to be to ensure that residents and staff do not experience any negative changes, including in care and quality of living at Garden Villa. Day-to-day operations and resident services continue to be managed by Darlene Sherrer, Executive Director, and Better Retirement Living Inc, the management company.”
Management is intent on making sure that the receivership order is correctly interpreted as a step in financial restructuring, rather than a sign of future troubles for Garden Villa.
“All trade payables and accounts are current, and it is entirely anticipated that there will be no interruptions on this front,” Kyle explained. “For all intents and purposes, it is business as usual at Garden Villa. This is evidenced by the fact that the only changes at Garden Villa since the receivership began in October have been ones that would be deemed positive.”
On the practical side of things, Garden Villa management has a plan in place to help beautify the retirement home and increase residency. “It is important to note that Garden Villa is renovating empty rooms as needed to attract new residents and a comprehensive roof replacement is underway, as approved by the Receiver and Garden Villa’s primary financial stakeholder,” Kyle added.
The Garden Villa is a two storey, bustling and vibrant retirement residence in downtown Chesterville. It features a full service dining room, a fireside lounge, a garden and paved walking trails, an activity room, a library, a beauty salon, and more. The residence has 87 suites, and opened over a decade ago.