TORONTO, Jan. 5 /CNW/ - Canada Bread Bakery, Limited (TSX: CBY) today
announced plans to close its frozen bakery facility in Laval, Quebec on
March 31, 2011.
The Laval bakery produces a variety of products, including crusty and
specialty breads and rolls, and employs approximately 55 people who
will be affected when the Company closes the facility on March 31,
2011. Production will be consolidated at the Company's other frozen
bakery facilities where there is available capacity. Canada Bread's
regional sales office in Laval will continue to be maintained.
"This closure was a difficult decision to make and we will do everything
we can to ease the impact on our people," said Réal Ménard, President,
Frozen Bakery division with Canada Bread. "However, it will allow us to
improve the cost structure and competitiveness of our business, while
continuing to deliver the same high standards of products and service
to our customers and consumers."
Affected employees will receive severance packages that exceed
provincial labour requirements, as well as personal counselling and
ongoing outplacement services and workshops. In addition, the Company
will give all affected employees first consideration for employment at
its fresh bakery facilities in Quebec which employ more than 1,000
people, including 60 jobs that will need to be filled for the upcoming
summer production period.
The existing land and building is an excellent asset and the Company
recognizes its strategic value longer-term. While the Company has no
immediate plans for the bakery, it will keep the facility and consider
it for other potential new business and development opportunities in
The Company expects restructuring and other costs related to the
closure, including severance, decommissioning and asset write-downs, to
be not more than $5.8 million before tax, $2.0 million of which is cash
expenses. Of the total closure costs, approximately $5.0 million will
be recorded in the fourth quarter of 2010 and the remainder when the
facility is decommissioned in the second quarter of 2011.
Canada Bread Company Limited, which is 90% owned by Maple Leaf Foods
Inc. (TSX:MFI), is a leading manufacturer and distributor of fresh
bakery products, frozen par-baked products and fresh pasta and sauces.
The Company had 2009 sales of $1.7 billion and employs approximately
8,000 people at its operations across North America and in the United
SOURCE Canada Bread Company, Limited
For further information:
Investor Contact: Mike Vels 416-926-2028
Media Contact: Laurent Pepin 514-843-2312