BOUCHERVILLE, Quebec, Nov. 16, 2018 (GLOBE NEWSWIRE) — 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 Officer
Tel. : 450-449-0026, ext. 1308
Fax : 450-449-6180
mario.brin@colabor.com