Dumoulin seeks CCAA protection, will close 6 stores
LAVAL, Quebec (25 February 2011) - Consumer electronics retailer Groupe Dumoulin said it will streamline its structure, close six corporate stores and exit the U.S. market after seeking protection from creditors under the Company's Creditors Arrangement Act (CCAA).
Over the past few years, the company has moved to supply televisions to hotels in the United States. Although initially successful, procurement problems with the main supplier of Hotel Solutions USA Inc. prompted Dumoulin to question its ongoing viability, particularly in the face of a difficult economic environment and tight credit. Those difficulties led the company to seek CCAA protection.
"Since 1946, retail sales have been and remain Dumoulin's strength," said Jacques Dumoulin, president and CEO of Groupe Dumoulin, in a statement. "We have distinguished ourselves by our customer service and have built a respected brand that is appreciated by our customers."
Dumoulin will close six of its 21 corporate stores. On its web site, the company said one of those outlets is in Gatineau, Quebec. The others were not identified, although it did say all six were unprofitable.
However, its network of 89 franchise stores will continue to operate and are not part of the restructuring effort nor under the umbrella of the CCAA. Outside of Quebec, Dumoulin operates under the Audiotronic banner and has stores in every province - as well as the Yukon and Northwest territories - except Prince Edward Island.
The company said all gift cards and extended warranties will be honoured. In addition, customers who have made deposits or are awaiting delivery of a product purchased at a store due to be closed will be able to complete their purchase and take delivery of the products ordered.
Founded in 1946 and operated by the third generation of the Dumoulin family, the company is perhaps Canada's largest privately owned CE retailer. It maintains a web site at www.dumoulin.com.