BOUCHERVILLE, Quebec, Jan. 08, 2020 (GLOBE NEWSWIRE) — Colabor Group Inc. (TSX: GCL) (“Colabor” or the “Corporation”) announces the consolidation of the Broadline distribution activities of its Summit Foods division in Ontario into its Mississauga distribution centre, resulting in the closing of its Ottawa and London distribution centres. This decision is consistent with the previously announced transformation and optimization plan of Colabor’s Ontario activities that resulted in the mutual termination of the supply contract between Colabor and Recipe Unlimited, which will be transitioned out by March 31, 2020.
“We sincerely regret the impact that the closure of our Ottawa and London distribution centres will have on our employees and their families. We will be providing assistance and support to help all employees in this transition period,” said Mr. Louis Frenette, President and CEO of Colabor. “Right sizing our Broadline distribution activities in Ontario was a difficult but necessary decision to further transform our business, improve our profitability and our competitive advantage.”The Mississauga facility will become Colabor’s distribution platform in Ontario, focusing on its Broadline distribution activities with independent restaurants and banners operating in Ontario. Sales and marketing activities will be maintained in Ottawa and London, as well as administrative activities in London. In order to reduce distribution costs while maintaining customer service levels, drivers previously operating out of the Ottawa and London facilities will be using satellite yards strategically located in Ontario. The closing of the Ottawa and London distribution centres will be effective February 9, 2020, and March 1, 2020, respectively.Forward-Looking StatementsThis 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 ColaborColabor 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:
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