Rona Closing 11 Stores to Save C$70 Million
Rona Inc. (RON), Canada’s largest hardware retailer, will close 11 stores in Ontario and British Columbia and cut 125 administrative jobs, saving C$70 million ($67 million)
The closings and job reductions are part of a restructuring plan aimed at saving C$110 million a year, the company said in a statement today. Rona plans to invest 30 percent of the savings into underperforming stores.
“Rona will become more agile and efficient, with a simplified business structure and an even stronger balance sheet,” Chief Executive Officer Robert Sawyer said in the statement.
Rona will close eight stores in Ontario and three in British Columbia. The job cuts will be in the company’s four administrative centers in Canada.
Rona fell 1.1 percent at C$9.71 yesterday in Toronto. The shares dropped 7.5 percent in the 12 months through yesterday, compared with a 5.5 percent gain in the Standard & Poor’s/Toronto Stock Exchange Composite Index.
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