May 21, 2025
Delviro's Collapse Moves Into Liquidation
Court-supervised sale begins amid limited cooperation and missing financial documentation
In March, Delviro Energy called it a “pause.” Now, it’s a liquidation.
The Canadian LED manufacturer, once known for its budget-friendly fixtures, is being dismantled under court supervision. On April 14, the Ontario Superior Court appointed Ernst & Young as receiver, acting on behalf of Delviro’s primary lender, National Bank of Canada. It’s the kind of quiet unraveling that starts with a vague customer letter and ends with a court-sanctioned auction.
The contrast is stark. Just eight weeks ago, Delviro’s leadership framed its halt in operations as a temporary measure — a response to rising tariffs and cash flow strain. Behind the scenes, though, the collapse was already in motion. Missed payments. Unfulfilled promises. And now a liquidation, marked by missing records, absent equipment, and a once-ambitious manufacturer reduced to salvage value.
It’s worth clarifying: Delviro is not in bankruptcy — at least not yet. Instead, it’s in receivership, a legal process in which a secured creditor (in this case, National Bank) seeks to recover its debt by asking the court to appoint a receiver to take control of a debtor’s assets. The receiver acts on behalf of the secured creditor, not all creditors generally. Bankruptcy, by contrast, typically involves a broader collapse of the business and a trustee distributing assets among all creditors. While the end result can look similar, the path — and the parties it serves — are distinct.
From Financial Strain to Court-Appointed Control
Delviro had defaulted on more than $5 million in obligations to National Bank by March 2025. Its collapse was not sudden, but rather a slow erosion, marked by missed payments, deferred promises, and unsuccessful refinancing efforts. Internal correspondence between Delviro and its lender over the past year paints a picture of a company scrambling to stay afloat while its financial foundations crumbled.
Delviro's sole officer and director, Joe Delonghi, had pledged both company assets and a personal guarantee to secure loans from National Bank. Despite multiple extensions and proposed repayment plans—including a failed attempt to monetize affiliated real estate—Delviro ultimately ceased operations before the court intervened.
According to court filings, Delviro operated out of a leased facility, employed roughly 50 to 70 people, and sold commercial and industrial LED fixtures throughout Canada and the United States. By the time the Receiver entered the premises in mid-April, production had stopped entirely.
Missing Assets and Missing Records
The transition from dormant business to active receivership has been rocky. The Receiver’s May 16 First Report details a troubling lack of access to key financial records, equipment, and digital systems. While Delviro’s principal provided some cooperation early on, that cooperation waned. Nearly half of the listed assets from a 2024 inventory report could not be located. When asked, Mr. Delonghi said the missing equipment had been sold to meet payroll—but provided no documentation to support this claim.
In addition, the Receiver was given a company laptop, but found it lacked almost all digital books and email records for 2025. Attempts to retrieve these critical documents have stalled, and the Receiver may seek further court orders to compel disclosure.
Everything Must Go
With operations shuttered and assets unaccounted for, Ernst & Young is now overseeing the liquidation of Delviro’s remaining property. The firm has engaged Maynards Industries to conduct an auction, with court approval expected to follow on May 23. The sale will include whatever equipment remains at the Brockport facility.
Maynards was selected from among six bidders, with the Receiver concluding their proposal offered the highest recovery with the shortest timeline. The auction is expected to conclude within 60 days. At its end, Maynards will also clean and vacate the site, returning it to a “broom-swept” state.
An End, Not a Pause
This latest chapter confirms what many in the lighting industry had feared since March: Delviro Energy is not just paused — it's over. The Canadian manufacturer, known for its aggressive pricing and rapid custom manufacturing, is now in the hands of liquidators.
The deeper questions — about how much money is recoverable, how agents and creditors will be treated, and whether any litigation will emerge — remain to be answered in the coming months. But for now, the story of Delviro is no longer about if it will return. It’s about how much can be salvaged, and for whom.
