Case goods maker Baronet closes
Weak retail, strong Canadian dollar led to losses
Michael J. Knell -- Furniture Today, November 14, 2007
SAINTE-MARIE De BEAUCE, Quebec — Contemporary case goods specialist Baronet has closed its doors, a victim of a weakening retail environment throughout North America and a surging Canadian dollar.
“After operating at a loss for nearly two years and despite added productivity from business restructuring efforts, Baronet Inc. and Baronet USA have been forced to seek protection under the Companies’ Creditors Arrangement Act,” the company said in a statement. The CCAA is Canada’s counterpart to the U.S. bankruptcy code.
All 145 employees of the 65-year old producer have been laid off and the factory here is closed.
“We can’t say it’s going to reopen at this time,” company spokesman Thierry Audin said in a telephone interview. “Everything that can be done to restructure the business is being done.”
He cited the closure of several important customers — including Up Country, a three-unit high-end retailer in Toronto — as well as the sharp rise in value of the Canadian dollar over the past two years as major factors in Baronet’s operating losses.
“It was a combination of all these factors,” Audin said.
-
Case goods maker Baronet closes
Nov 18, 2007
Merinos Home Furnishings opening display room, Boyles addition
‘Mega vessels' likely to boost capacity, stabilize freight rates
HOM Furniture adds flooring to six Twin Cities stores
Dan Masters joins Furniture Brands as VP, business development
21 companies from Turkey, Taiwan and China to exhibit at Showtime
Featured Company
-
Brandwise Inc.
Brandwise serves a model - not just an industry - by integrating, automating, and optimizing the entire sales channel, from wholesale Suppliers to their Reps and the Retailers they service. In short, our software helps Reps and Suppliers sell more and create... more
VIEW ALL GALLERIES
