Canada Bread to close Quebec frozen bakery
January 6, 2011
by Eric Schroeder
TORONTO — Canada Bread Bakery, Ltd. said it plans to close its frozen bakery facility in Laval, Que., on March 31, 2011. The bakery, which employs approximately 55 workers, produces a variety of products, including crusty and specialty bread and rolls.
The company said it will consolidate production at its other frozen bakery facilities where there is available capacity. Canada Bread operates a frozen bakery in Calgary, Alta., and three in the Toronto area. The company also has three frozen bakeries in the United States.
“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 of the 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.”
Calling the existing land and building an “excellent asset” with “strategic value longer-term,” Canada Bread said it has no immediate plans for the bakery and will keep the facility and consider it for other potential new business and development opportunities in the future.
The company expects restructuring and other costs related to the closing, including severance, decommissioning and asset write-downs, to be not more than C$5.8 million before tax, C$2 million of which is cash expenses. Of the total closing costs, approximately C$5 million will be recorded in the fourth quarter of 2010 and the remainder when the facility is decommissioned in the second quarter of 2011.