Colabor Group Announces a Rationalization Plan
November 16 2018 - 4:00PM
Colabor Group Inc. (TSX: GCL) (“Colabor” or the “Company”) today
announces a plan to rationalize and optimize its operations. This
plan, approved by the Board of Directors, is intended to allow
Colabor to improve its operational efficiency, profitability and
competitiveness.
The implementation of the plan results in the
elimination of 51 positions, approximately 3.7% of the total
workforce of the Company. The plan encompasses most of Colabor's
divisions in Quebec and in Ontario, including the closure of its
Logan Street cash-and-carry operation in Ontario.
These measures should result in costs reduction
of approximately $ 2.9 million, before taxes, which will
progressively materialize from the current quarter and will have
full effect in the 2019 financial year. Colabor will record a
charge unrelated to current operations of approximately $ 1.1
million, before taxes, in its results for the last quarter of
fiscal 2018.
"This difficult decision was necessary in order
to lighten our organizational structure and improve our efficiency
in an ever-changing business environment," commented Lionel
Ettedgui, President and CEO of Colabor.
Forward-Looking Statements
This news release contains certain statements
that may be deemed to be forward-looking statements reflecting the
opinions or current expectations of Colabor Group Inc. concerning
its performance, business operations and future events. Such
statements are subject to risks, uncertainties and assumptions and
the analysis of the debt structure and available alternatives, and
risks mentioned in the Corporation’s annual information form found
under its profile on SEDAR (www.sedar.com), such as the risk of
dilution for existing shareholders. As such, these statements are
not guarantees of future performance, and actual results, realities
or events may differ materially. Except as required by law, the
Corporation assumes no obligation to update these forward-looking
statements in the event that management’s beliefs, estimates or
opinions or other factors change.
About Colabor
Colabor is a distributor and wholesaler of food
and related products serving the hotel, restaurant and
institutional markets or "HRI" in Quebec, Ontario and in the
Atlantic provinces, as well as the retail market (grocery stores
and convenience stores). Within its two operating segments, Colabor
offers specialty food products such as meat, fresh fish and
seafood, as well as food and related products through its Broadline
activities.
Further
information:Colabor Group
Inc.Mario Brin, MBA, ICD.D.Interim Senior
Vice President and Chief Financial OfficerTel. : 450-449-0026,
ext. 1308Fax : 450-449-6180mario.brin@colabor.com
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