Dorel Industries has announced a major downsizing of its Home segment as part of a strategic realignment aimed at returning the business to profitability by 2026.
The company will shut down its domestic manufacturing operations in Cornwall, Ontario and significantly reduce its product range, marking a decisive shift in direction for the segment.
The move comes as Dorel seeks to streamline operations by focusing on high-performing, profitable categories and cutting complexity within the organization. A number of select SKUs will be transitioned into the company’s Cosco division, which has consistently delivered earnings and positive cash flow for over a decade.
“The restructuring is focused on right-sizing the Home business,” the company stated, referencing an earlier commitment to overhaul the segment following its first-quarter results in May. The integration of Dorel Home’s sales, marketing and product development functions into Cosco is expected to create a more agile and efficient operation. Cosco, a long-standing brand with a 90-year history, is known for delivering strong consumer value and operational reliability.
The closure of the Cornwall plant represents one of the most visible signs of the downsizing effort. Dorel said the decision followed an in-depth operational review supported by consulting firm EY-Parthenon. The plant wind-down is expected to be completed by the end of the third quarter, with the company aiming to eliminate ongoing losses and reduce its overall footprint and workforce.
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Dorel is also exiting non-core product categories and planning a significant reduction in inventory by the end of the year. This will support further consolidation, including scaling back its distribution network and exiting warehouse leases. Where early exits aren’t possible, the company is exploring subleasing options to reduce costs.
The restructuring is part of a broader strategy to concentrate resources on Dorel’s more profitable Juvenile segment, which has shown strong performance in global markets. With operations across Europe, Latin America, Australia, and domestic manufacturing in the U.S., the Juvenile division is positioned to deliver above-average earnings compared to peers, the company said.
Dorel expects the changes to begin positively impacting earnings by the fourth quarter of 2025, with more detailed financial projections to be released alongside its second-quarter results in August.
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