Monday, November 2, 2009

There's More To This Story....

I had the opportunity to watch the televised version of this story and the thing that seemed to jump out to me was how Cabinetmaster expected the Government to continue to support the company after it had significantly defaulted on their 2008 receivership proposal... let's remember that both levels of Government gave them significant support back in 2006 and 2007 during their expansions and when the company had significant financial problems in 2008 the Government didn't just bail out on them but continued to support them by agreeing to restructure their debt through a revised business plan which was prepared by the company we now understand that the company has gone significantly "off-side" from that 2008 restructuring plan to the point that the company couldn't meet its financial obligations... furthermore the company is now asking Government to take an addition $1,500,000 write-off on the building at taxpayers’ expense so a private individual can buy it below market value, amongst other demands... and for them to imply that the Government and the Company's creditors are not supporting them seems like sour grapes to me.... it's been my experience that Government does try and work to keep people employed but my guess is that the lack of support might have more to do with the "management" as opposed to the talented men and women that work on the floor who unfortunately may be the real victims here along with a host of other small creditors... it's interesting that while this company appears to be failing due to what they call a recession another local cabinet manufacturer Chandler Brothers are expanding into new premises in the West Royalty Industrial Park and hiring lots of new staff... obviously a contradiction in management capabilities...
Cabinetmaster closing doors
Monday, November 2, 2009
CBC News
A Charlottetown woodworking company that once employed more than 100 people is closing.
Cabinetmaster Architectural Woodwork Ltd. did most of its business in the United States — much of it with the Marriott International hotel chain.
Gordie Kirkpatrick, president and CEO of Cabinetmaster, said even though his company enjoyed growth between 2002 and 2006, the recession and high Canadian dollar has put the company out of business.
"When we first started exporting to the States, when we brought $1 home we'd get $1.61," he said.
"At some point in the last couple of years, it went down as low as 95 cents, so 68 cents difference makes a huge impact on your ability to be able to produce effectively and be profitable."
Kirkpatrick said the company tried to negotiate with creditors but those discussions fell through.
Cabinetmaster was founded in 1980 as a division of Prebilt Structures Ltd., specializing in kitchen cabinets. Kirkpatrick acquired the company in February 2002 and moved it to the former Coca-Cola bottling plant building on Kensington Road the following year, according to the company website.
Kirkpatrick said after several expansions, he employed approximately 105 people in 2006.
The 29-year-old company will close Tuesday. It currently employs about 50 people.

1 comment:

Anonymous said...

I actually have a copy list of creditors for this. (So you can see whay I'm posting this anonymously) It's nauseating what is being reported vs. what the truth actually is.
Almost makes me want to mail a copy to CBC so they have the real story.