The top home improvement retailer and distributor in Canada, Rona Inc, is undergoing its second phase in its restructuring plan. This would involve the closure of stores, cutbacks on employee numbers and overall reduction of costs with a goal of returning to profitability.
The company said last Thursday that it would be closing 11 unprofitable stores, cut back on administration, marketing, merchandising as well as distribution costs. This would result in 125 employees would be given their walking papers.
The 125 job cuts are over and above the 200 employee firings it announced last February. Alongside the restructuring would be the expansion of its distribution business to other provines and the scaling back of its big box program for stores outside the Quebec province.
WIth the restructutring, Rona aims to be more competitive in light of the entry of its US based competitors such as Home Depot Inc and Lowe's Cos. Inc.
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