Article Date 09/01/2020

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Colabor Announces the Consolidation of Its Ontario Distribution Activities

Source Globe Newswire

Colabor Group Inc. announces the consolidation of the Broadline distribution activities of its Summit Foods division in Ontario into its Mississauga distribution centre, resulting in the closing of its Ottawa and London distribution centres.

This decision is consistent with the previously announced transformation and optimization plan of Colabor's Ontario activities that resulted in the mutual termination of the supply contract between Colabor and Recipe Unlimited, which will be transitioned out by March 31, 2020.

"We sincerely regret the impact that the closure of our Ottawa and London distribution centres will have on our employees and their families. We will be providing assistance and support to help all employees in this transition period," said Mr. Louis Frenette, President and CEO of Colabor. "Right sizing our Broadline distribution activities in Ontario was a difficult but necessary decision to further transform our business, improve our profitability and our competitive advantage."

The Mississauga facility will become Colabor's distribution platform in Ontario, focusing on its Broadline distribution activities with independent restaurants and banners operating in Ontario. Sales and marketing activities will be maintained in Ottawa and London, as well as administrative activities in London.

In order to reduce distribution costs while maintaining customer service levels, drivers previously operating out of the Ottawa and London facilities will be using satellite yards strategically located in Ontario. The closing of the Ottawa and London distribution centres will be effective February 9, 2020, and March 1, 2020, respectively.

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