Canada CRE News In Your Inbox.

Sign up for Connect emails to stay informed with CRE stories that are 150 words or less.

Sub Markets

Property Sectors

Topics

Quebec  + Canada + Cross Border News  + Industrial  | 
Photo of a Dorel furniture plant.

Dorel to Close Montreal Furniture Manufacturing Facility

Dorel Industries plans to close its furniture manufacturing facility in Montreal as part of a major restructuring of the company’s home-furnishings business.

Westmount, Que.-based Dorel said the upcoming closure aligns with the company’s strategy to streamline its home-furnishings operations and improve overall efficiency in response to evolving market conditions.

Production at the Montreal facility is scheduled to cease before the end of the first quarter of the current fiscal year. Dorel cited “significant changes” in North America’s furniture industry following the COVID-19 pandemic as the primary cause of the decision.

“Since then, the industry has struggled with supply chain uncertainty, inflation and higher interest costs which means consumers have deprioritized spending on home furnishings,” said Dorel in a news release. “This has, in particular, impacted traditional North American furniture suppliers and retailers, resulting in a number of significant industry bankruptcies.”

With the market size having decreased since the pandemic, Dorel aims to succeed by focusing on its core competencies and its long-term relationships with retailers that sell moderately priced furniture.

“This requires adjustments to the Dorel Home business model and a reduction in overall footprint to achieve profitability,” said the company.

Over time, the Montreal facility has become dedicated exclusively to mattress production. To ensure seamless order fulfillment and future supply needs, alternative sources have already been secured, said Dorel.

In the third quarter of 2024, Dorel commenced the closure of a ready-to-assemble furniture plant in Tiffin, Ohio as part of a shift of all production to a Cornwall, Ont.

Additionally, Dorel plans to maintain one Canadian warehouse at an unspecified location to support its operations across the country. Dorel will also retain West Coast and East Coast warehouses in the U.S.

The company estimates that the efforts will cost US$9 million in cash and an additional US$9 million in non-cash write-offs and accelerated depreciation of assets. Dorel anticipates that the full benefits of the moves will be achieved in 2026, resulting in an earnings increase up to US$40 million.

Dorel’s home-furnishings business is based in Wright City, Mo. The segment operates in Canada and the U.S.

The parent company company has locations in major regions across the globe.

Photo: Dorel

Connect

Inside The Story

Dorel Industries

About Monte Stewart

Monte Stewart serves as Content Director - Canada for Connect Commercial Real Estate. Based in Vancouver, British Columbia, Monte provides daily news coverage of major Canadian commercial real estate markets, including Vancouver, Toronto, Montreal and Calgary. He has written about the real estate sector for various media outlets and Avison Young since the early 2000s. In addition, he has covered sports, general news and business for several leading wire services and publications, including The Canadian Press, The Associated Press, The Calgary Herald, The Globe and Mail, Research Money, The Daily Oil Bulletin, Natural Gas World and The Toronto Star. Monte is active in his community as a youth basketball coach and raises funds for such charitable causes as Movember.

  • ◦Development
New call-to-action