Following a period of silence and significant disruption, this statement aims to clarify the events that led to the challenges faced by Wood Doctor, provide assurance regarding warranties, and outline the path forward. As President of Wood Doctor, with 16 years dedicated to this company, I want to address our valued customers, dealers, and partners directly.
For nine years, Silverwinds Hutterite Colony, operating as Silverwinds Metals, served as the manufacturer of Wood Doctor furnaces. This relationship, however, has concluded, and Silverwinds Metals is now producing a competing furnace under the name Polar Furnace. This shift has unfortunately included actions that have impacted our distribution network.
Wood Doctor has a long history of success in the furnace industry. Concurrent with our furnace business, I ventured into establishing a high-speed wireless internet company, Netbundle Inc., in Nova Scotia. Outside Heating Systems Ltd. (Wood Doctor) provided financial backing and loan co-signing for this venture. However, a provincial initiative to expand high-speed internet access across Nova Scotia presented unforeseen obstacles. Despite submitting the lowest bid and possessing the fastest wireless network in the province, our bid was ultimately rejected. This decision, influenced by political factors and a biased tendering process, resulted in substantial financial losses, close to $1.5 million, which unfortunately impacted Wood Doctor through outstanding loans.
Simultaneously, evolving EPA regulations placed additional strain on our operations. The increasing adoption of EPA furnace standards across states significantly raised manufacturing costs and limited the market for outdoor commercial and industrial furnaces, as EPA certifications were restricted to furnaces under 350,000 BTU. These regulatory changes made several previously profitable states less viable for our dealer network.
Further complicating matters, internal dynamics also shifted. Several years prior, I bought out my partner’s shares in Outside Heating Systems Ltd., retaining him in a sales and commission-based role. The subsequent recruitment of this former partner by Silverwinds Metals signaled their intention to directly compete and manage distribution, which materialized swiftly.
Faced with these challenges, we explored new manufacturing partnerships, including an initial opportunity to acquire a fully equipped factory in Virginia. While promising, the necessary financing to operate the facility and build inventory could not be secured. We then established Creative Energy Solutions LLC in Virginia and hired a CFO. Regrettably, this individual engaged in fraudulent activities, diverting company funds and leaving us to manage the financial repercussions.
Despite these setbacks, we developed a revised marketing strategy focused on collaborating with established fabrication companies. Trimech was contracted to create new CAD plans essential for furnace production. However, delays in the CAD plan delivery significantly hampered our production timeline, pushing completion well into the fall season, effectively making it too late to produce furnaces for that year.
Adding to our difficulties, Silverwinds Metals unexpectedly discontinued our popular HE8000 EPA furnace model during the summer, after numerous units had already been sold. This unanticipated discontinuation of a previously stocked item disrupted our order fulfillment and cash flow, as profits from these sales had been allocated to operational expenses. Attempts to secure EPA furnace production from alternative factories were hindered by the lack of completed CAD plans and time constraints.
Throughout this period, a considerable amount of effort was directed towards resolving immediate crises. Silverwinds Metals’ decision to produce their own competing Polar Furnace underscored a clear shift in their business strategy. As Wood Doctor’s challenges mounted, Silverwinds Metals indicated they might not honor existing warranty obligations, despite a written 5-year warranty covering 100% of repairs. This warranty commitment, provided by Silverwinds Hutterite Colony, is a matter of record and contractual obligation.
The situation further escalated when a scheduled tractor-trailer shipment to the Silverwinds Metals factory revealed a lack of available inventory and a refusal to sell their new Polar Furnace brand to us. Despite reports of stockpiled furnaces, we were informed of component shortages, while Colony Minister Zack Hoofer Sr. suggested potential future production for Wood Doctor, contingent on waiting. We agreed to wait.
However, just as furnaces were finally produced and initial shipments arranged, a wave of credit card refunds severely impacted our bank account. These simultaneous refunds not only negated the funds intended for Silverwinds Metals but also erased previously allocated profits, effectively depleting our operational capital and leading to a near cessation of business activity. Drastic expense reductions were implemented across all locations, resulting in a minimal part-time staff.
Personally, I also faced financial strain, deferring personal obligations while striving to sustain Wood Doctor. This situation has deeply affected many individuals, including loyal dealers, friends, customers, creditors, and employees, and for this, I sincerely apologize. At 60 years old, and with extensive business experience, navigating this business failure has been a profoundly challenging experience, lacking any readily available playbook. Reflecting on these events, I recognize areas where better risk mitigation strategies, such as shorter leases and commitments, and a focused approach within our core heating sector, could have offered greater protection.
I deeply regret the difficulties and inconveniences this situation has caused and acknowledge that improved communication should have been prioritized. I am committed to future reimbursements to all affected parties. The Wood Doctor website is scheduled to relaunch in May 2012, and I want to reiterate my sincere apologies for these disruptions.
To ensure transparency, a copy of the warranty provided by Silverwinds Metals (now Polar Furnace) to Outside Heating Systems Ltd. for furnaces manufactured over the preceding nine years is available, and warranty claim forms for repairs within the initial five years are being made accessible on our website www.wooddoctorfurnace.com.
The manufacturing contract explicitly holds Silverwinds Hutterite Colony responsible for all repair expenses during the first five years. A clause referencing solvency obligations in a ‘future contract’ was inserted into the warranty; however, no such future contract was ever established, rendering that clause invalid. This addition occurred after my concerns were voiced regarding the use of less expensive boiler plate material. Concurrently, Silverwinds Metals agreed to a three-year furnace replacement policy within the five-year warranty period.
Silverwinds Metals’ obligations do not extend beyond the initial five-year warranty. Wood Doctor remains committed to supporting customers beyond the Silverwinds warranty period, doing our utmost to address past customer needs.
The following is excerpted from a letter sent to Silverwinds Hutterite Colony by the President of Wood Doctor on January 4, 2012:
“Neil Hoofer knowingly failed to rectify stress corrosion leakage issues around the chimney and door jamb extension, leading to firebox leaks and subsequent corrosion. His justification was cost, stating that correcting these faults was not financially justifiable against warranty expenses. Neil explicitly stated, ‘If we were to spend $200.00 on every furnace we built annually, totaling 1,000 furnaces, that would amount to $200,000. It’s not worthwhile, as our warranty costs will never reach that figure.’ This perspective undermined any possibility of improvement.”
“It was only recently discovered, upon examining an original WD8000 furnace (referred to by Silverwinds as SW25), that NO SUPPORT STRUCTURE EXISTED FOR THE FIREBOX. The entire weight of the firebox and wood load was supported solely by welds around the chimney and door jamb extension.”
“WHY WAS FIREBOX SUPPORT OMITTED?”
“This revelation was startling, especially considering Neil Hoofer’s previous assertions regarding stress corrosion around the chimneys. I had attributed this to heat and low water levels, lacking detailed CAD drawings for thorough examination.”
“The persistent failures now suggest a possibility of deliberate design flaws. Neil Hoofer had openly questioned my role, asking, ‘Why do we need Arthur? Why not handle distribution ourselves?’ He also expressed concern that ‘The warranty to Wood Doctor is under our Colony’s name; it needs to be in a limited company.’ The rationale behind this was unclear to me at the time, especially concerning customer support and warranty fulfillment.”
“As failures became increasingly frequent, my confidence in the reliability of Silverwinds furnaces diminished. My hope rested on Neil Hoofer implementing promised improvements. However, the subsequent distress caused by Silverwinds Metals (Polar Furnace) to families is deeply concerning, emphasizing the urgent need for compassionate resolution and replacement of defective furnaces.”
“Two years prior, Neil Hoofer directly asked me, ‘If Wood Doctor fails due to warranty claims, would it bring Silverwinds down with it?’ My response was, ‘How could warranties cause Wood Doctor’s failure, given that the warranty is your responsibility?’”
“For years, I have been concerned about the implications for customers’ warranties if I were to leave Wood Doctor, given that the warranty was issued to Outside Heating Systems Ltd. This created a sense of entrapment, coupled with a declining desire to sell furnaces from Silverwinds Hutterite Colony (Polar Furnace) due to a lack of confidence in their long-term reliability.”
“The ongoing issues, even within 3 to 5 years of use, are avoidable. Furnace longevity should extend far beyond 5 years. Neil Hoofer’s cost-cutting measures have inflicted significant damage on customers, dealers, and Wood Doctor. Even basic improvements, like correcting the bushing around the pull rod, required repeated requests over several years. My consistent inquiries about furnace improvements and timelines were often met with delays and unfulfilled promises, such as the long-awaited implementation of 3/8 inch steel in door jamb extensions, which never materialized.”
The preceding is an excerpt from a letter to Silverwinds Hutterite Colony.
“However, it is also important to acknowledge that the Hutterite community largely comprises good, intelligent, and honorable individuals. Many Hutterites have been friends, and I harbor no animosity towards the Hutterite people in general, nor bitterness towards Neil, only disappointment. Neil’s actions and motivations have been perplexing. Paradoxically, increased collaboration with Silverwinds seemed to correlate with increased opposition from him. It is now apparent that Neil Hoofer exhibits traits of Narcissism. He fits the textbook definition – the minister’s son, raised in esteem, considered handsome and articulate, and currently managing the factory. This combination presents a concerning outlook for the future.”
“Currently, Neil Hoofer is informing Wood Doctor customers that Silverwinds Metals will not honor their warranty obligations, asserting that it is Wood Doctor’s responsibility. However, the warranty was issued by Silverwinds Hutterite Colony, making purchasers Silverwinds Metals customers for the initial five-year warranty period. A copy of this warranty is available at www.wooddoctorfurnace.com.”
“Silverwinds Colony, influenced by Neil Hoofer and Dave, has prioritized financial considerations over their commitments and obligations. They are denying valid warranty claims during the stipulated five-year manufacturing warranty. This is documented in communications from numerous individuals. Had Neil Hoofer upheld his warranty obligations instead of spreading misinformation, this public disclosure would have been unnecessary. His actions have left no alternative.”
“For Wood Doctor warranty claims within the first 5 years, please contact the factory directly:”
“Polar Furnaces Mfg. Inc. or Silverwinds Metals Colony, PO Box 159, Sperling, Manitoba, R0G 2M0, Canada. Phone: 204-626-3485. Fax: 204-626-3326. Contact: [email protected] or [email protected].”
“There is no intention to cause embarrassment or trouble for the Colony.”
“Outside Heating Systems Ltd. has ceased operations, but we remain committed to our promises and obligations. All outstanding orders will be fulfilled shortly with improved furnace models. WOOD DOCTOR WILL CONTINUE.”
“Warranty claims beyond the 5-year Silverwinds warranty, pertaining to our prorated replacement warranty, can be directed to:”
“Wood Doctor, 397 Prince St., Truro, Nova Scotia B2N 1E6 Canada.”
“We are dedicated to honoring our warranty commitments to the best of our ability.”
“May 4, 2012 – WARRANTY UPDATE: The case of Rino Francoeur from Edmonston, NB, Canada, exemplifies the ongoing warranty issues. Mr. Francoeur experienced complete furnace corrosion failure of a Silverwinds furnace in under three years. Despite photographic evidence emailed in December 2011 and assurances of a replacement furnace, as of April 24, 2012, Mr. Francoeur has not received his replacement. Silverwinds Metals, now trading as Polar Furnaces, has left Mr. Francoeur without a functioning furnace throughout the winter. This furnace, designed and patented by Neil Hoofer of Silverwinds Metals, failed prematurely due to corrosion.”
“Why has this customer not been taken care of? I approved the replacement over four months ago and provided supporting images. Neil communicated with the customer, promising a replacement. Where is it? It is untenable for me to remain involved when warranty claims are clearly not being honored. I will advise all customers to engage directly with you, as my involvement appears to impede claim resolutions. Arthur Turple, President, Wood Doctor.”
“PS: There is positive news. The period from spring 2011 to spring 2012 was exceptionally challenging. Silverwinds discontinued the HE8000 model and subsequently halted all furnace supplies for a period, while consistently assuring us of eventual production resumption. Ultimately, we managed to ship one tractor-trailer load of furnaces before the credit card payment recalls triggered the company’s collapse.”
“A few customers are yet to receive their orders due to our closure. These orders will be honored, and customers will receive an upgraded furnace model soon.”
“Several manufacturers have offered support upon learning of our situation, which is greatly appreciated. While initially unable to re-engage immediately, I am now prepared to move forward.”
“Some online reports regarding delivery delays during the summer are accurate, primarily due to supply unavailability. Undelivered furnaces at the time of our closure will be shipped shortly.”
“One individual, using the online pseudonym ‘Hawken’ (real name John H-r-y from Nova Scotia), is actively disseminating false information about me, my family, partners, and the company. This individual, a former employee dismissed from a position of trust, distorts facts and fabricates lies to create a false narrative. The ‘Hawken’ online profile itself is also fabricated. John H-r-y also exhibits narcissistic tendencies, significantly more advanced in his case.”
“A SOLUTION TO THE PERSISTENT FURNACE FAILURE ISSUES WITHIN OUR INDUSTRY IS IMMINENT. Details will be available on our website by May 1, 2012. Arthur Turple, President, Wood Doctor, www.wooddoctorfurnace.com.”
