Performance Sports Group Ltd. said 59 employees of Bauer are expected to be terminated between January and February 2016 due to the closing of a distribution facility in Mississauga, Ontario.
The company plans to discontinue distribution operations at the facility in February 2016. Management of the company committed to the closure of the facility on Nov. 3, 2015.
The distribution facility is being closed in an effort to better align
the company's distribution activities with its overall business needs
while enabling the company to better serve its customers and is part of
the company's five-year plan to improve pre-tax profitability by $30
million (excluding certain non-recurring costs or one-time costs that
may be required to implement some of the related initiatives), which was
first announced by the company in October 2014.
The company currently
expects to incur estimated pre-tax expenses and charges of $3.8 million
in connection with the discontinuation of distribution activities at the distribution facility. These expenses and charges include the following
major components: (i) estimated employee-related costs (including
severance) of $3.0 million and (ii) estimated other related costs of
$0.8 million. The company estimates that substantially all of these
expenses and charges will be cash expenditures. The company further
expects the expenses and charges related to this action will be largely
completed by the end of the company's fourth quarter of Fiscal 2016. The
company's fiscal year ends May 31st.
