Bankruptcy lawyer says cleaners and customers will have trouble getting money from Surrey-based cleaning company Scrubbi
Nakul Saggar is an international student from India who lives with seven roommates. In order to pay the bills while going to school, he picked up a job with Surrey-based cleaning company Scrubbi.
The 19-year-old says he started in May, but noticed his payments not coming through starting in September. He says he's owed around $2,000.
"It means a lot to me," said Saggar. "I have to pay my tuition, I have to pay my rent, I have to pay my car insurance. It means a lot."
Saggar says the company has ignored his inquiries about pay, yet he still receives message reminders from the company for scheduled cleanings.
On Wednesday, CTV News heard from a Scrubbi head office employee who said he was notified by CEO Daniel Deckert that operations have been shut down.
CTV News went to Scrubbi headquarters in Surrey Thursday and it appeared no one was in the office. However, the Scrubbi website remains operational.
Saggar is one of dozens of cleaning contractors who have come forward claiming to be owed thousands of dollars by the company. Scrubbi originally told its contractors the delayed payments were due to an issue with the bank.
Scrubbi customers have also come forward claiming to be out thousands of dollars after paying upfront for a full year's worth of service.
"Because they've prepaid, they've requested a cancellation or refund and have had some difficulty with it," said Simone Lis of the Better Business Bureau, which gave Scrubbi an F rating.
"The company has had 34 complaints in our 3-year reporting period.”
Bankruptcy lawyer Geoffrey Dabbs confirmed to CTV News that the company, as of Thursday evening, has not filed for bankruptcy. However, in these situations, he says it's usually only a matter of time.
"Under federal law, either the company can do it or a creditor can force them into bankruptcy," said Dabbs, partner with Gehlen, Dabbs and Cash LLP.
"I think this will likely happen here given the size of the company and given the fact that there needs to be a methodical way of dealing with it."
Dabbs says the contracted cleaners and customers will have a hard time seeing any compensation, as the company has to first deal with taxes and the bank.
“The one wrinkle for people who are unsecured creditors – and that would include a contractor or customers – is they’re on the bottom of the priority list,” Dabbs said.
CTV News tried reaching out to Scrubbi CEO Daniel Deckert and has emailed the comapany several times over the past two weeks, but has not received a response.
CTVNews.ca Top Stories
DEVELOPING Defence rests without Donald Trump taking the witness stand in his New York hush money trial
Donald Trump's lawyers rested their defence Tuesday without the former president taking the witness stand in his New York hush money trial.
Passenger killed, 30 injured as Singapore Airlines flight hits severe turbulence
One passenger was killed and 30 injured after a Singapore Airlines SIAL.SI flight from London hit severe turbulence en route on Tuesday, forcing it to make an emergency landing in Bangkok, officials and the airline said.
Feels like mid-30s in parts of Canada, while other areas expecting snow
Anything is possible this week, as far as Canada's weather is concerned, with forecasts ranging from scorching heat in some parts of the country to rain and snow in others.
Canada's inflation cools to 3-year low of 2.7%, in boost for rate cut bets
Canada's annual inflation rate slowed to a three-year low of 2.7 per cent in April, matching expectations, and core measures continued to ease, data showed on Tuesday, likely boosting chances of a June interest rate cut.
'Documents are fraudulent': Graceland is not for sale, Elvis Presley's granddaughter says in lawsuit
Riley Keough, the granddaughter of Elvis Presley, is fighting plans to publicly auction his Graceland estate in Memphis after a company tried to sell the property based on claims that a loan using the king of rock ’n’ roll's former home as collateral was not repaid.
Trump campaign calls 'The Apprentice' 'blatantly false,' director offers to screen it for him
Donald Trump's reelection campaign called 'The Apprentice,' a film about the former U.S. president in the 1980s, 'pure fiction' and vowed legal action following its premiere at the Cannes Film Festival. But director Ali Abbasi is offering to privately screen the film for Trump.
Nestle to sell $5 pizza, sandwiches in the U.S. for Wegovy, Ozempic users
Nestle NESN.S will market a new, US$5 line of frozen pizzas and protein-enriched pastas in the United States which it says it designed specifically for people taking drugs such as Wegovy or Ozempic for weight loss.
What is BORG drinking, and why is it a dangerous trend? An expert explains
If you've been to a party lately and haven't seen someone drinking a BORG, you're likely not partying with college students.
Independent stores and grocery alternatives see sales boost amid Loblaw boycott
As the month-long boycott of Loblaw-owned stores wears on, small independent food retailers and alternative grocery options say they're seeing a boost in traffic and sales.