Dorel to shutter North American manufacturing in major restructuring

Dorel Industries announced sweeping changes to its home segment today, including the elimination of all North American manufacturing operations, as part of a broader restructuring plan aimed at returning the business to profitability by 2026.

The update follows a commitment made in the company’s first-quarter earnings released May 12.

Dorel will shut down its domestic production facilities in Cornwall, Ontario, by the end of the third quarter and significantly reduce the size of its home division.

See also: Dorel Inds. revenue down 8.7% in Q1 as home segment posts another loss

The company also plans to consolidate sales, marketing and product development under its Cosco division, which has delivered consistent earnings and positive cash flow within the Home segment since 2010. A limited number of high-performing imported SKUs from Dorel Home will be integrated into the Cosco portfolio.

“These changes being implemented at Dorel represent some of the most significant in our over 50-year history,” said Martin Schwartz, Dorel president and CEO. “The decision to further reduce the size of the home segment was not made lightly. However, it is the only feasible course of action to return to profitability.”

According to the company, Cosco has delivered consistent earnings and positive cash flow within the Home segment since 2010, including during the period led by Troy Franks. Dorel described Cosco as a long-established brand known for reliable performance and a market-driven approach to product development.

The company will also combine certain back-office functions of Dorel Home with its Juvenile North America operations in Columbus, Indiana, to generate additional synergies.

The decision to shutter all domestic manufacturing followed an extensive review of ongoing operations conducted with consulting firm EY-Parthenon. The wind-down is expected to minimize future losses and satisfy customer obligations.

In addition, the home segment will exit product categories now considered noncore and plans to significantly reduce inventory by the end of the year. Dorel will vacate warehouses as leases expire and pursue subleasing opportunities for longer-term spaces.

The company says that the changes will positively impact its earnings, starting in the fourth quarter of 2025. Additional financial details will be provided in Dorel’s second-quarter earnings report, expected to be released in August.