Dinec seeks bankruptcy protection
By Michael J. Knell -- Furniture Today, January 15, 2006
Trois-Rivières, Quebec — Casual dining specialist Dinec is seeking bankruptcy protection under the Companies' Creditors Arrangement Act, a procedure similar to a Chapter 11 filing in the United States.
In a letter written in French to the industry in Quebec, Dinec President and CEO Patrice Gervais said the move was necessary to give the company time to restructure and refinance. He said he was confident Dinec would emerge as a stronger and more financially healthy company.
Gervais said the company would continue to operate and ship product to retailers in Canada and the United States.
The name of the court-appointed trustee and interim receiver was not known at press time.
Dinec is best known as a producer of custom-order casual dining, although it launched a similarly merchandised and manufactured line of bedroom furniture two years ago.
Last year, Dinec relocated to a new factory and headquarters facility here and put its original plant in nearby Louiseville up for sale.
At the time, Gervais said the move would allow Dinec to dramatically increase productivity and add 50% to overall capacity, while shedding about 65 production and administrative staff positions. In 2004, the privately held manufacturer had estimated sales of C$40 million.
Dinec's showroom at the International Center in Toronto has been closed, and the company did not participate in this past weekend's Canadian Home Furnishings Market. Dinec also has a permanent showroom in High Point and participated in the first Las Vegas market last July. It's not known whether it will show in Las Vegas later this month.
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