GBO Temporarily Suspends its OperationsSeptember 8th, 2011 by Editor
GBO Inc. in Quebec, a manufacturer of doors and windows, has temporarily suspended its operations effective immediately due to liquidity issues. According to the company’s statement, these issues are preventing GBO from purchasing the raw materials required to fulfill orders and until a solution is found the company has decided that suspending operations is the best plan of action.
GBO says it will review its operations, debts and obligations to its creditors and consider all restructuring options available.
All directors except for Christopher Wood, chairman of the board and chief executive officer, have resigned from the board of directors effective immediately.
On August 17 the company had released first quarter results showing sales of $3.1 million, a decrease compared to $4.6 million in the same period of the previous year. Canadian sales declined by $1.4 million or 53.6 to $1.2 million, compared with $2.7 million in the same quarter of the previous year. U.S. sales decreased by $0.1 million or 6.4 percent to $1.8 million, compared with $1.9 million in the same quarter of the previous year. The company also recorded an operating loss of $1.6 million during the first quarter of fiscal 2012, compared with an operating loss of $1.1 million a year earlier.
In June GBO had announced that Montblanc Capital Corporation, a real estate investment and development company headquartered in Toronto, had entered into an agreement with Fonds de Solidarité des Travailleurs du Québec (FSTQ) to acquire the 4,490,880 common shares, or 25.38 percent, in the capital of GBO currently held by FSTQ.