Unfortunately, the glad tidings of the late 70's were followed by dire economic times in the early 80's. As a result of the poor performance of the photo finishing company along with the deepening recession and skyrocketing interest rates, Henry's went into receivership on November 15, 1982.

All the branches, except the main store, were closed and the bank debt was paid off. The building at 119 Church Street was sold off as were most of the other assets.

One of the partners in the defunct company, Andrew Stein, grandson of Harry, felt that there was still value in the company. After all, its name and reputation were well known across Canada and throughout the industry. Andrew’s offer to buy back the company was accepted on February 11, 1983. Henry's was now once again in the hands of the Stein family. Andrew and his wife, Gaye, founded Cranbrook Glen Enterprises Limited, which became the sole owner of Henry's.