A second Quebec manufacturer announced mass dismissal This week in the middle The threat of American President Donald Trump’s prices on Canadian exports.
The Montreal Manufacturer of Montreal Sheertex (SRTX), the founder and CEO, Katherine Homuth, announced on Wednesday in Linkedin that the company had placed around 40% of its 350 employees on temporary layoff. This represents around 140 people losing their job.
Prime Minister Justin Trudeau, Center, welcomes workers while shooting Sheertex, a tights manufacturing plant, with founder Katherine Homuth, during International Women’s Day in Pointe-Claire, Qué., Friday, March 8 2024.
The Canadian Press / Christinne Muschi
“This decision was not taken lightly. With 85% of our sales in the United States, and tens of millions invested in our Canadian factory, changes and American pricing in the United States in the closing of the last part of our fundraising led to a huge financial uncertainty, ”wrote Homuth.
In an email sent to Global News, Homuth said that the financial impact of the prices had already started, even before the official implementation.
Get national news
For news that has an impact on Canada and worldwide, register for the safeguarding of news alerts that are delivered to you directly when they occur.
She highlighted the “increases in immediate costs due to changes in the supply chain, the urgent need to move stocks before prices affect, the impact on investment and cash flows” and, finally, How the costs linked to prices is “unmanageable without action”.
The company says it rushes to move the inventory through the border over the next 30 days before the new potential rate of 25%. This means that it pays the current 16% in advance on the invent inventory.
It also indicates that its fundraising and trade agreements have been disrupted.
“Investors and partners adjust their risk assessments, which slows down financing discussions,” said Homuth, adding that the remaining $ 23 million on its previously guaranteed increase have now been delayed.
The founder of Sheertex said that this decision did not aim to wait for the implementation of the prices, but to meet the real and immediate financial impacts already in motion.
“We are now acting to survive what is coming, rather than reacting too late when it remains at fewer options.”
It comes on the heels of Quebec furniture manufacturer, South Shore Furniture, announcing that he had dismissed 115 people In the province, also due to the threat of American prices on Canadian goods, which should now come into force in a month.
The province has seen a wave of layoffs in recent weeks. January 22, American electronic commerce giant Amazon said that he would close his seven facilities in Quebec. The company said that it would fire around 2,000 permanent and temporary workers – a number that the Ministry of Labor has confirmed since it was in fact exceeding 4,500 after including delivery service partners.
Global News contacted South Shore furniture to comment.
& Copy 2025 Global News, A Division of Corus Entertainment Inc.