Unisync Launches Major Integration Plan to Improve its Service Offering and Maximize Operational Efficiencies
August 29 2023 - 8:00AM
Unisync Corp.
(“Unisync")
(TSX:"UNI")
(OTC:“USYNF”) today announced that its Unisync
Group Limited (“UGL”) division has begun a major operational
consolidation endeavor, integrating its Carleton Place, Ontario and
its St. Laurent, Quebec based distribution and small-lot product
manufacturing and embellishment facilities into its recently
expanded 140,000 square foot main distribution centre in Guelph,
Ontario. This strategic transformation places our commitment to
customer service at the forefront by leveraging our specialized
warehouse management and electronic storefront systems to elevate
the service experience of our customers. This consolidation
was made possible through the implementation of an upgraded ERP
system and the successful amalgamation of corporate entities
following our acquisitions of Carleton Uniforms and Utility
Garments.
While our service, sales and purchasing teams
will continue to operate from our St. Laurent location to ensure
uninterrupted service to our valued customers, this move is
strategically designed to substantially enhance our service
offerings to the national and Quebec-based clients that have been
warehoused at that location and to generate significant domestic
operational efficiencies.
Driven by a vision of a stronger and more
unified company poised for an enhanced service offering and
sustainable growth, these operational adjustments are expected to
yield an estimated annual savings of $2.5 million in direct and
administrative labour costs due to a net reduction of about 20% in
the UGL division’s headcount. The restructuring is scheduled for
completion within the next three months and is expected to cause a
one-time fourth quarter charge for employee separation costs of
approximately $0.9 million.
In addition to improved operational efficiency
and reduced labour costs, management is pursuing opportunities to
lease the estimated 35-40,000 square feet of excess
commercial/light industrial space that will become available in our
Montreal facility as a result of this restructuring.
We extend our sincere appreciation to the
dedicated employees who will no longer be with us following this
restructuring, many of whom have contributed their talents and
expertise over lengthy careers with the Company. We understand that
adapting to change can be challenging and are fully committed to
facilitating a smooth and respectful transition process for all
affected employees.
About Unisync
Unisync is a broad-based vertically integrated
North American enterprise with exceptional capabilities in garment
design, domestic manufacturing, and offshore outsourcing, including
state-of-the-art web based B2B ordering, distribution, and program
management systems. Unisync operates through two business units:
UGL with operations throughout Canada and the USA and 90% owned
Peerless Garments LP, a domestic manufacturing operation based in
Winnipeg, Manitoba.
On Behalf of the Board of Directors
Douglas F. Good, CEO
Investor
relations contact:Telephone:
778-370-1725 or Email investorrelations@unisyncgroup.com
Forward Looking Statements
This news release may contain forward-looking
statements that involve known and unknown risk and uncertainties
that may cause the Company’s actual results, performance or
achievements to be materially different from any future results,
performance or achievements expressed or implied in these
forward-looking statements. Any forward-looking statements
contained herein are made as of the date of this news release and
are expressly qualified in their entirety by this cautionary
statement. Except as required by law, the Company undertakes no
obligation to publicly update or revise any such forward-looking
statements to reflect any change in its expectations or in events,
conditions or circumstances on which any such forward-looking
statements may be based, or that may affect the likelihood that
actual results will differ from those set forth in the
forward-looking statements.
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