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
Community mourns victims of fatal boat crash near Kingston, Ont.
The three people killed in last weekend's tragic collision between a speedboat and a fishing boat north of Kingston are being remembered Friday.
Humboldt Broncos crash victims and families react to decision to deport truck driver
The family of one of the victims of the Humboldt Broncos bus crash in 2018 says they are 'thankful' for a decision by a Calgary immigration board to deport the driver of the truck involved.
More enoki mushrooms, Lamborghini Urus and promotionally-gifted tumbler cups: Here are the recalls for this week
Health Canada, Transport Canada and the Canadian Food Inspection Agency (CFIA) issued various recalls this week. Here's what you need to know.
'God forgives but we don’t': Loud outburst from stabbing victim’s family during sentencing hearing
An emotional outburst in a London, Ont. courtroom Friday disrupted the sentencing hearing of a woman who pleaded guilty for her part in the death of 29-year-old Mohammed Abdallah.
American Airlines drops law firm that said a 9-year-old girl should have seen camera on toilet seat
American Airlines has replaced the law firm that told a judge a nine-year-old girl was negligent in not noticing there was a camera phone taped to the seat in an airplane lavatory.
Luciano Benetton says he's stepping down as chairman of family-run brand as losses top US$100 million
Luciano Benetton, a co-founder of the apparel brand, announced he was stepping down as chairman in an interview published on Saturday with Milan daily Corriere della Sera. He blamed current management for losses of 100 million euros (US$108.5 million) that he discovered last year.
Three dead after vehicle leaves road in Shediac: N.B. RCMP
Three people have died after a vehicle veered off the road in Shediac N.B., Friday morning.
A woman took her dog to a shelter to be euthanized. A year later, the dog is up for adoption again
Exhausted and short on options after consulting two veterinary clinics, Kristie Pereira made the gut-wrenching decision last year to take her desperately ill puppy to a Maryland shelter to be euthanized.
1 dead, 3 in hospital after flying wheel crashes into bus windshield on QEW
A man is dead, and three others are in hospital after a flying wheel crashed into a coach bus on the QEW in St. Catharines.