Purchase of trade name, patterns, and inventory from receiver constituted sale of part of a business.
The applicant union applied under section 63 of the Labour Relations Act, alleging a sale of a business from Shiffer-Hillman Company Limited to the respondent, 529592 Ontario Limited.
The predecessor company went into receivership, and its former vice-president incorporated the respondent to purchase assets, including the trade name, patterns, and some inventory, from the receiver.
The respondent operated from the same location, used the same telephone number, and employed several former employees, though it contracted out manufacturing and sold directly to the public.
The Board found that the transaction constituted a sale of a part of a business, as the respondent acquired essential components, notably the location and goodwill associated with the trade name, to carry on a restructured version of the predecessor's business.
The respondent was declared bound by the collective agreement.