Shermag closing plant
Michael J. Knell -- Furniture Today, March 2, 2008
Lennoxville, Quebec — A union representing workers at the Shermag factory here said it has been told that the plant will close in about eight weeks for an indefinite period.
Shermag recently announced that would close four of its eight manufacturing plants in Quebec and New Brunswick over the coming weeks. The Lennoxville facility was not one of those.
The United Steelworkers local said that Shermag will transfer its chair assembly operations to its plant in Granby, Quebec, and then convert Lennoxville into a warehouse.
"However, the company has assured us that it does not intend to sell the machines, or to transfer them, for the time being," said Martin Courville, staff representative of the union.
Shermag officials did not respond to requests for comment.
In a written statement, the union said that about 45 workers will be affected and that the company said the move was caused by a drop in orders. Courville said that a few years ago, the factory had over 200 employees.
Shermag is considering a proposal from its largest shareholder — the Halifax, Nova Scotia-based investment firm Clarke Inc. — to take the company private. It also announced that revenues for the third quarter of its current fiscal year fell 39% to C$23.4 million while the net loss, including one-time charges for the plant closings, climbed to C$22.4 million or C$1.62 a share.
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Union: Shermag to stop production in Lennoxville
Feb 15, 2008
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