Nudestix: the old company, the Vaughan lease and the sole inspector

The Nudestix business still occupies all or part of 274 Edgeley Blvd., in Vaughan, Ontario, but the company that leased the premises no longer runs it. Nudestix Inc. developed and sold makeup under the Nudestix brand until August 2025, when, as its trustee understands it, the company sold substantially all of its assets to a U.S.-based private group or related acquisition entity. Since then the purchaser, not the company, has carried on the Nudestix-branded business, and it occupies the premises under arrangements arising from that sale, while the lease itself, dated September 25, 2023, between 974443 Ontario Ltd. as landlord and Nudestix Inc. as tenant, was still the company's on the date of bankruptcy, per the Trustee's Preliminary Report, Aug. 11, 2026, p. 1. The trustee's letter to creditors is careful on the point: the proceeding "does not relate to the purchaser or any current Nudestix-branded operations," per the Notice to Creditors, July 30, 2026, p. 1.

The company made an assignment in bankruptcy on July 22, 2026, and the Official Receiver certified the bankruptcy at 14:04 the next day, appointing MNP Ltd. as trustee, per the Certificate of Appointment, July 23, 2026, p. 1. The statement of affairs, sworn on July 22 by Jenny Frankel, the company's director, puts total assets at $23,330.00 and total liabilities at $7,206,889.25, and gives the company's account of what went wrong in two sentences: "After carrying out a sales process, in August 2025, the Company completed a transaction to sell substantially all of its assets. Following the sale, the Company ceased operations and did not retain sufficient assets to satisfy its liabilities." That account is in the Statement of Affairs (Form 78), in Notice to Creditors, July 30, 2026, pp. 4, 19; the director's role is recorded in the Minutes of the First Meeting of Creditors, Aug. 12, 2026, p. 1.

On September 14, the file came before Justice Jana Steele on the Commercial List for a case conference, and her three-paragraph endorsement records that the trustee "seeks to schedule an urgent motion for among other things advice and directions regarding the disclaimer of a commercial lease and the revocation of the appointment of the sole inspector." The motion is scheduled for October 16, 2026, for half a day, per the Endorsement of Justice Steele, Sept. 14, 2026, paras. 1–3. Philip Cho of WeirFoulds LLP appeared for the trustee, and Maurice V. Fleming as counsel for Nudestix Canada ULC. A month earlier, at the first meeting of creditors, Mr. Fleming had been appointed the estate's sole inspector, per the Minutes of the First Meeting of Creditors, Aug. 12, 2026, p. 3.

A creditor list from Seoul to Dubai Media City

Almost all of the $7,206,889.25 is unsecured: $7,183,557.25, across a list of liabilities numbered to 111, per the Statement of Affairs (Form 78), in Notice to Creditors, July 30, 2026, pp. 4, 19. The two largest claims are both marked as inventory: HWA SUNG Cosmetics, of Seoul, at $1,124,530.72, and Crystal Claire Cosmetics Inc., of Scarborough, at $1,011,511.14. Other inventory claims include Global Link Sourcing Inc., of Murrieta, California, at $304,801.48, Kolmar USA at $140,230.46 and HCT Packaging Inc. at $110,660.55. SCHWAN-STABILO GmbH, of Heroldsberg, Germany, is carried at $466,410.76 in accounts payable; Worldwide Freight Logistics Limited (ZenCargo), of London, at $347,968.11 for operations; and two claims marked as fixtures, Array Marketing Canada Inc.'s and that of Active Creative, of Dubai Media City, at $356,096.28 and $338,678.42, per the Statement of Affairs (Form 78), in Notice to Creditors, July 30, 2026, pp. 6, 8, 12, 14, 16, 19.

Fifty-one of the 111 entries are marked as marketing, owed to agencies, talent managers, promoters and content producers in New York, Beverly Hills, Paris, Sydney and Kuala Lumpur, the largest of them Studio Beauty LLC, of New York, at $90,870.57. Three claims are on promissory notes: 1831769 Ontario Inc. at $536,620.66, 2472859 Ontario Inc at $500,000.00, and Jenny and Lorne Frankel at $500,000.00. The landlord, 974443 Ontario Ltd., appears at $1.00 for rent, and two litigation claims are carried at $1.00 each as contingent, per the Statement of Affairs (Form 78), in Notice to Creditors, July 30, 2026, pp. 6, 13, 14, 17. The trustee describes those two as a claim for alleged severance entitlements, which it understands the purchaser settled after the bankruptcy on terms that included a full release in favour of the company, and a claim relating to an alleged investment in the company, with allegations of misrepresentation and oppressive conduct, whose amount remains undetermined, per the Trustee's Preliminary Report, Aug. 11, 2026, pp. 3–4.

By the first meeting of creditors, $1,026,509 of claims had been filed, none of them secured, and the trustee had admitted some for voting purposes only, without yet determining whether, or in what amount, they will be admitted for distribution, per the Trustee's Preliminary Report, Aug. 11, 2026, p. 3.

What the bank sent

The statement of affairs values the company's assets at $23,330.00, all of it on deposit with Royal Bank of Canada. A footnote to the list of assets puts the balances in the RBC accounts registered in the company's name at $184,399.00 in the Canadian-dollar account, with USD $916.20 and USD $812.50 in two U.S.-dollar accounts, but adds that a third party has asserted a beneficial ownership interest, that the trustee has not finished reviewing that claim, and that "the asset has been disclosed for informational purposes only," per the Statement of Affairs (Form 78), in Notice to Creditors, July 30, 2026, p. 5.

MNP asked RBC to put the accounts on deposit-only status as soon as it had its certificate of appointment. RBC paid on July 29. From the Canadian-dollar account it remitted approximately CAD $207,894.87, which the trustee understands to have been a $180,000 credit memo, a $44,249.30 Scientific Research and Experimental Development refund and a pre-existing balance of about $5,450.37, less $20,352 paid for the 18% commission incurred to generate the SR&ED refund and for certain state taxes. RBC also sent approximately USD $916.20, converted to about CAD $1,260.87, and the proceeds of a guaranteed investment certificate, $35,000 in principal plus $638.63 in interest. The trustee says that certificate was not separately disclosed in the statement of affairs, and it understands the purchaser advanced the funds to assist with the transition of the acquired assets and with the continued use of the company's bank accounts after closing, per the Trustee's Preliminary Report, Aug. 11, 2026, p. 2. A U.S.-based account holding about USD $812.50 appears to be associated with the company's U.S. subsidiary, and the trustee has not attributed any realizable value to it. It is investigating whether any of the estate cash is subject to "a security interest, beneficial ownership claim, or other third-party entitlement," per the Trustee's Preliminary Report, Aug. 11, 2026, p. 3.