Komet signs a production agreement with a subcontractor for the manufacture of bathroom vanity products and kitchen cabinets, an
March 31 2011 - 8:55AM
PR Newswire (Canada)
MONTREAL, March 31 /CNW/ -- The Company has realigned its strategic
direction to focus on the marketing and distribution of bathroom
vanity products and kitchen cabinets MONTREAL, March 31 /CNW
Telbec/ - Komet Manufacturers Inc., "Komet" (TSXV: AQD), today
announced the sale of all of its manufacturing equipment to a
specialized kitchen manufacturer for $350,000. The sale agreement
was signed on March 15 and is conditional on the latter securing
$350,000 in financing before May 1, 2011. When filing Komet's
financial statements for December 31, 2010, senior management
indicated that the Company had suffered a significant reduction in
sales following the loss of their biggest client. Despite efforts
to develop new products (bathroom vanity furniture) and a new
product line (kitchen cabinets), the Company has not been able to
compensate for the significant drop in sales. Following this drop
in sales over last two quarters, Komet carried out a review of its
strategic direction and made the decision to streamline its
manufacturing operations in order to remain competitive. To this
end, the Company will now rely on a manufacturing subcontractor and
cease all production activities as of Friday, April 29, 2011. The
subcontracting agreement, which includes the sale of Komet
equipment to the subcontractor, was signed with the objective of
benefiting from the expertise of a manufacturing specialist in
bathroom vanity products and kitchen cabinets. The Company will now
focus solely on the distribution and marketing of these products to
establish a clear path to profitability and further develop the
market. Production staff was notified on March 21 of final layoffs,
which take effect at the end of April in line with the cessation of
all production activities. About Komet Komet, a Quebec corporation
headquartered in Blainville, has been listed on the TSX Venture
Exchange since June 2007. The Company specializes in designing and
manufacturing bathroom furniture products, which are marketed under
the Aquadis brand name. The company also manufactures kitchen
cabinets for builders and consumers. The TSX Venture Exchange has
not approved this press release and does not accept responsibility
for the authenticity or accuracy of the information contained in
the release. To view this news release in HTML formatting, please
use the following URL:
http://www.cnw.ca/en/releases/archive/March2011/31/c8145.html p
Msupe/sup Frédéric Bérardbr/ Special Advisorbr/ HKDP Communications
and public affairsbr/ (514) 395-0375 extension 259br/ a
href="mailto:fberard@hkdp.qc.ca"fberard@hkdp.qc.ca/a /p
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