Graziella Fine Jewellery Inc., an Ontario jewellery retailer, has been placed into receivership after Royal Bank of Canada spent more than a year trying to recover money owed under demand credit facilities. The Ontario Superior Court of Justice granted RBC’s application on September 11, 2026, appointing Grant Thornton as receiver over the company’s assets.
Justice McCarthy, who presided over the case, found that RBC had limited visibility into Graziella’s collateral and that there was no evidence the company could repay its debt, refinance, or secure new capital. The judge concluded that appointing a receiver was just and convenient given the unpaid demand debt and ongoing defaults.
How the Debt Built Up
Graziella entered into a credit agreement with RBC on February 7, 2022. Under that agreement, the bank extended four facilities: a $350,000 revolving line of credit, two term loans initially advanced at approximately $74,296 and $128,222, and business credit card facilities with maximum availability of $150,000. The term loans were later repaid, leaving the line of credit and credit card facilities outstanding. Graziella’s obligations were secured by a general security agreement granting RBC a first-ranking security interest in the company’s personal property. Three related Ontario corporations guaranteed the debt, and directors Jacques Basmaji and Deeb Basmaji, who are brothers, each provided personal guarantees covering part of the obligation.
RBC’s concerns with the account trace back to mid-2024, following repeated overdrafts and difficulty obtaining financial information from the company. The bank requested financial documents in the fall of 2024 with a December 20 deadline, but did not receive the required disclosure until February 2025. On March 18, 2025, RBC asked for additional reporting, including quarterly profit and loss statements, balance sheets, aged receivables and payables, and updates on HST and source deductions. According to the court record, those documents were never delivered. Graziella’s RBC account went into overdraft repeatedly between February and September 2025, and the company stopped using its RBC accounts around September 2025.
Court Rejects Company’s Objections
RBC formally demanded repayment and issued notices of intention to enforce security on August 29, 2025. The two sides attempted to negotiate a forbearance agreement afterward but were unable to reach terms. As of May 13, 2026, Graziella owed RBC $527,875.20, a figure that excludes further accrued interest, fees, disbursements and costs.
Graziella Fine Jewellery: Key RBC Credit Figures
Graziella opposed the receivership application, arguing in part that discoveries had not yet taken place. Justice McCarthy rejected that argument, finding that RBC’s facilities were payable on demand, the debt remained unpaid, and the bank lacked sufficient information about the company’s financial condition and the value of its collateral. He also noted that Graziella’s general security agreement had expressly contemplated the appointment of a receiver in the event of default, and pointed to the company’s outstanding financial reporting, its shift away from its RBC accounts, and its repeated overdrafts as further evidence of default under the credit agreement.
Grant Thornton has been appointed receiver of Graziella’s assets. Legal counsel in the proceeding included Gowling WLG for RBC, Carnevale Business Corporation for the defendants, and Bennett Jones for Corona Jewellery Company.
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