Almost three years to the day after filing for bankruptcy, and two years after being revived by Mercer Mass Timber, Structurlam remains locked in a legal battle with Walmart, the company whose cancelled contract helped push it into insolvency.
The dispute resurfaced in the B.C. Supreme Court last month, where a judge ordered two Canadian engineering firms to turn over technical documents and reports for use in ongoing U.S. proceedings.
Walmart is seeking $80m in damages, according to a ruling released on Wednesday
Structurlam sought creditor protection in early 2023 after Walmart terminated its contract for the retailer’s new Arkansas headquarters, a project previously covered by Wood Central. To service the deal, the company had opened a dedicated facility in Conway, Arkansas.
Walmart first accelerated delivery deadlines for one of the campus buildings in July, then redesigned six of the eight major buildings in August. Structurlam worked to accommodate the changes, despite the strain on the Conway mill. Around the same time, Walmart announced it would no longer purchase above the minimum contracted volumes, further reducing Structurlam’s margins.
By October 2022, Walmart had allegedly stopped inspecting or collecting finished products and had withheld payment for materials already delivered. The following month, Structurlam identified a batch of material with a “data‑process deviation.”
The company notified Walmart, had the product assessed by an engineer, and produced a full report confirming that all remaining material met specifications. Walmart dismissed the findings as “not relevant” and refused to accept further deliveries or pay outstanding invoices unless Structurlam adopted a new piece‑by‑piece certification process.
Structurlam then commissioned an independent engineering review, which, like its internal assessment, concluded the material met contract requirements. The company also offered to deliver 175 pieces of laminated timber to demonstrate product quality, but Walmart declined.
In December, the retailer cancelled the exclusivity portion of the contract, and in January 2023, formally terminated the agreement, claiming Structurlam had “failed fully and timely to perform its delivery obligations.”
A final proposal from Structurlam, offering minimal terms to salvage the relationship, was rejected on January 17.
By March, the company had filed for bankruptcy. In July, Walmart submitted a $80 million claim for allegedly “defective, nonconforming, rejected, nondelivered, or returned goods” and associated replacement costs.
Since bankruptcy, Structurlam has been acquired and rebranded. In mid 2023, Mercer International purchased the company for $81 million and now operates the Mass Timber business in Penticton, Okanagan Falls, Spokane, and at the consolidated Conway plant.
Please note: Extracts from article come from an article that appeared in the Summerland Review overnight.
