Dorel Industries provides restructuring update

The company said, “The lower-than-expected sales and margin levels in the first quarter in the Home segment has prompted additional restructuring activities which will be communicated and subsequently implemented during the second quarter, over and above those previously announced on January 30, 2025. As a first step, the operations of the Home segment will be significantly altered, with the sales, marketing and product development organization being merged into the successful Cosco division. The new organization will design, develop and bring to market both imported and domestically produced product for the entire Home segment. A substantial number of positions will be eliminated as they have been identified during the second quarter as redundant and not necessary to support anticipated sales levels and channels moving forward. Back-office functions to support the organization will also be consolidated, leveraging resources from the Juvenile segment where beneficial. We are actively pursuing other opportunities that we believe can decrease our overhead and operating costs further and will communicate all meaningful developments by the end of June 2025. The benefits of the restructuring plan announced in January are evident in the lower run rate of operating expenses. In addition, the manufacturing operations in Montreal, Quebec were closed in the first quarter. The ability to further reduce the Home segment’s footprint is being explored to deliver even more cost savings connected to the SKU reduction initiative and smaller distribution footprint objectives. Dorel Juvenile continues to identify opportunities for cost reduction across the segment and in the quarter ended March 31, 2025 recorded US$1.2 million in restructuring costs, made up of severance and related employee costs.”