Canadian Tire plans Montreal-area distribution center
Toronto-based Canadian Tire, the DIY and automotive retailer, plans a new 1.5 million-square-foot distribution center in the Montreal area.
The center, to be built in Coteau-du-Lac, Quebec, will come into operation in 2009, according to the company. In a statement, Canadian Tire said the move is part of a growth and expansion planned for eastern Canada.
The opening of the new facility will be preceded by testing of new information technology and “state-of-the-art” material handling systems this year. When completed, the DC will process goods for stores in Ontario, Quebec and Canadian Maritime locations.
Canadian Tire is contracting with Genco Distribution System, a third-party logistics provider with 125 locations in North America, for the new distribution center.
“Canadian Tire’s long-standing relationship with Genco started with the operation of our returns facility and expanded to include our Calgary distribution center,” explained Patrick Sinnott, senior vp-supply chain for Canadian Tire.
Canadian Tire operates more than 473 stores across Canada, as well as other locations under the names PartSource, Canadian Tire Petroleum and Mark’s Work Wearhouse.
Lowe’s evacuated after chemical spill
Lowe’s was forced to evacuate a store in Medford, N.Y., yesterday after employees lifting a pallet of hydrochloric acid accidently damaged some of the containers, causing them to leak, according to several media outlets.
Long Island’s Newsday, citing local fire officials, reported that seven people were hospitalized with chemical burns and respiratory problems. The Suffolk police said that no one suffered life-threatening injuries, however. It was unclear as to whether those exposed to the chemicals were customers or employees.
News 12, a Long Island television station, reported that two customers were sent to local hospitals and the rest of the victims were treated at the scene.
Hydrochloric acid, also known as muriatic acid, is commonly used as a pool-cleaning agent. According to Newsday, Lowe’s workers accidently poked a case of plastic bottles of hydrochloric acid with a forklift, causing them to leak. The incident happened at about 2:40 p.m. The store was evacuated and closed down for cleanup for the next three hours, the newspaper said.
Creditors to take majority control of Ainsworth Lumber
Vancouver-based oriented strand board producer Ainsworth Lumber, facing financial difficulty because of tumult in the U.S. housing market, has announced a plan to allow creditors to take over 96 percent of the company.
The recapitalization plan is pending the approval of shareholders and Canadian courts. Under the plan, members of the founding Ainsworth family will lose their controlling interest, according to the Edmonton (British Columbia) Journal. The Ainsworth family members most recently controlled 58 percent of company shares and have been prominent in the company’s management. That will change under the new arrangement, with the new owners of the company being the bondholders who will own 96 percent of newly issued stock.
As part of the plan, $823.5 million in debt will be converted to equity in the company and $150 million in new bonds. A further $200 million in bonds will be issued to fund recapitalization costs and operating expenses.
The company’s board of directors, supported by a recommendation of an independent committee, unanimously recommended the action.
“[Under the] company’s existing capital structure, the recapitalization is the best alternative available to the company and its lenders, noteholders, shareholders and other stakeholders,” read a statement from the lumber company.