09:40 AM EDT, 06/30/2025 (MT Newswires) -- Dorel Industries (DII-B.TO, DII-A.TO) on Monday said it is cutting the size of its Home segment. Dorel will focus on profitable categories and eliminate manufacturing operations in Cornwall, Ontario.

The company will transfer some high-performing Dorel Home import products to the Cosco portfolio, which has delivered consistent earnings and positive cash flow within the Home segment since 2010, a statement said.

Dorel Home back-office functions has also been consolidated with its Juvenile North America operations based in Columbus, Indiana. The wind-down of these operations will be complete by the end of the third quarter.

The Home segment is exiting product categories that are now considered non-core, and will reduce inventory by the end of the year. Dorel is also exiting from existing warehouses this year and will explore sub-leasing opportunities for facilities with longer termination dates.

The changes are expected to improve earnings by the fourth quarter of this year. The estimated cost and run-rate savings of these activities will be provided in more detail in August.

The company has also engaged two capital market advisors to assist in re-capitalizing its balance sheet to allow for growth in the Juvenile segment and support the re-organization of the Home segment. The new structure will replace the current debt structure.

"The decision to further reduce the size of the Home segment was not made lightly, considering our origins as an RTA manufacturer in North America and the impact on our numerous employees," said Chief Executive Martin Schwartz. "However, it is the only feasible course of action to return to profitability. With the anticipated recovery of the Home segment in 2026, the sustained positive momentum at Dorel Juvenile, and new financing arrangements that will be in place, Dorel is establishing the path to return to profitability."

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