Mar. 31, 2011 (Canada NewsWire Group) --
The Company has realigned its strategic direction to focus on the marketing
and distribution of bathroom vanity products and kitchen cabinets
MONTREAL, March 31 /CNW Telbec/ - Komet Manufacturers Inc., "Komet" (TSXV: AQD), today announced the sale of all of its manufacturing equipment to a specialized kitchen manufacturer for $350,000. The sale agreement was signed on March 15 and is conditional on the latter securing $350,000 in financing before May 1, 2011.
When filing Komet's financial statements for December 31, 2010, senior management indicated that the Company had suffered a significant reduction in sales following the loss of their biggest client. Despite efforts to develop new products (bathroom vanity furniture) and a new product line (kitchen cabinets), the Company has not been able to compensate for the significant drop in sales.
Following this drop in sales over last two quarters, Komet carried out a review of its strategic direction and made the decision to streamline its manufacturing operations in order to remain competitive. To this end, the Company will now rely on a manufacturing subcontractor and cease all production activities as of Friday, April 29, 2011. The subcontracting agreement, which includes the sale of Komet equipment to the subcontractor, was signed with the objective of benefiting from the expertise of a manufacturing specialist in bathroom vanity products and kitchen cabinets. The Company will now focus solely on the distribution and marketing of these products to establish a clear path to profitability and further develop the market.
Production staff was notified on March 21 of final layoffs, which take effect at the end of April in line with the cessation of all production activities.
About Komet
Komet, a Quebec corporation headquartered in Blainville, has been listed
on the TSX Venture Exchange since June 2007. The Company specializes in
designing and manufacturing bathroom furniture products, which are
marketed under the Aquadis brand name. The company also manufactures
kitchen cabinets for builders and consumers.
The TSX Venture Exchange has not approved this press release and does not accept responsibility for the authenticity or accuracy of the information contained in the release.
Me Frédéric Bérard
Special Advisor
HKDP Communications and public affairs
(514) 395-0375 extension 259
fberard@hkdp.qc.ca