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Company can't pay suppliers, shuts door on operations

GBO Inc, the Quebec-based maker of Bonneville doors and windows, has temporarily shut down its operations due to a cash crunch.


October 25, 2011
Sandy MacIsaac

Purchasingb2b: September 2011

GBO Inc, the Quebec-based maker of Bonneville doors and windows, has temporarily shut down its operations due to a cash crunch.

“These issues are preventing the company from purchasing the raw materials required to fulfill orders,’’ GBO said in a release. “Until a solution is found, the company deemed it best to suspend operations.’’

GBO said the shutdown takes effect immediately. All of GBO’s directors, except for the company’s chairman and CEO, Christopher Wood, have resigned from the board of directors, effective immediately.

The company makes wooden windows, doors and accessories sold under the Bonneville and Polar brands. Its customers are home improvement and construction markets mainly in Quebec, Ontario, the Maritimes and the eastern and southeastern US.
In August, GBO reported it had doubled its net loss in the latest quarter on sharply lower sales. The company lost $1.8 million—or 10 cents a share—for the three months ending May 31. That’s compared with $770,000, or two cents, a year ago.

The manufacturer posted sales of $3.1 million, down from $4.6 million. Canadian sales fell by more than half to $1.2 million from $2.7 million, while US sales dropped by just over six percent to $1.8 million.

GBO said poor weather affected the company’s profitability in the first quarter of fiscal 2012, affecting construction markets and its own factory output. As well, its manufacturing plant south of Quebec City was flooded.

Last spring, GBO had announced its Bonneville windows and doors division was awarded a US$1 million contract to restore a multi-storey building in Brooklyn with its windows. b2b