Shermag To Lay Off 90 Workers

August 15, 2006  by in UnCategorized   

By Home Furnishings Business in on August 2006 Shermag Inc. is laying off another 90 workers at a factory in Disraeli, Que., as the money-losing furniture-maker continues with an extensive restructuring.

The layoffs will take effect Oct. 9, for an indefinite period, the company said via a release.

The company has already announced the closure of a plant in Victoriaville, Que., and the proposed closing of several others.

Shermag announced in June that it plans to move some of its production to Asia because a strong Canadian dollar and high labor and warehousing costs resulted in a 25-per-cent drop in revenue and a $22.7-million loss in the fourth quarter.

Last year, the company also had problems integrating a new computer system and experienced “temporary issues” with two U.S. department store chains.

The company hopes to return to profitability by building its “standardized furniture” in Asia, leaving the Quebec operations responsible for “make-to-order-based production models.”

The company stock declined four cents on the Toronto Stock Exchange Monday morning to $2.16.