Great news today for shareholders but sad day for employeesStock is down on this news.. must be sympathetic traders.lol
In this business(investing) if you want a friend.. get a dog.!
Supremex to close Edmonton facility, fire 39 employees
2020-12-01 09:55 ET - News Release
Shares issued 27,915,669
SXP Close 2020-11-30 C$ 1.70
Mr. Stewart Emerson reports
SUPREMEX ANNOUNCES PLAN TO OPTIMIZE COSTS AT ITS ENVELOPE PLATFORM
Supremex Inc. plans to further optimize its Canadian envelope operations by reducing expenses and improving resource allocation.
Supremex will be closing its Edmonton facility and reducing its Canadian envelope facility head count by a total of 39 employees, or approximately 5 per cent of its total work force. These measures will result in annual cost reductions of approximately $2.4-million, before taxes, which will begin to materialize in the current quarter and throughout the first three quarters of 2021 as operations wind down in Edmonton. A one-time charge of approximately $2.5-million, before taxes, will be recorded in the company's 2020 fourth quarter results.
"We deeply regret the effect that these measures will have on employees and their families, and, wherever possible, we have worked with them on early-retirement possibilities," said Stewart Emerson, president and chief executive officer of Supremex. "These cost-saving initiatives will allow us to limit the impact of the pandemic and ongoing secular decline on our legacy envelope business, and realize synergistic opportunities resulting from our February, 2020, acquisition of Royal Envelope. As stated previously, our focus in 2021 will remain on extracting operational leverage, profitably grow our packaging platform and creating shareholder value."
About Supremex Inc.
Supremex is a leading North American manufacturer and marketer of envelopes, and a growing provider of paper-based packaging solutions. Supremex operates 13 facilities across six provinces in Canada and three facilities in the United States, employing approximately 850 people. Supremex's growing footprint allows it to efficiently manufacture and distribute envelope and packaging solutions designed to the specifications of major national and multinational corporations, resellers, government entities, SMEs (small and mid-sized enterprises) and solutions providers.