November 27, 2017 Volume xxiii, #45

“Success depends upon previous preparation, and without such preparation there is sure to be failure.”
—Confucius (Chinese philosopher, teacher, and politician, 551-479 B.C.)

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Strategy of careful growth has enabled Patrick Morin to maintain its values

NIAGARA FALLS, Ont. — Meet Patrick Morin. The chain of building centres, based largely in and around the Montreal market, was started in 1960 by the eponymous Mr. Morin, and continues to this day as a family-run operation.

Daniel Lampron, the general manager of Patrick Morin, shared the company’s story at the Hardlines Conference, held recently in Niagara Falls. Although well known in its home province of Quebec, the company is less well known in other parts of the country, so delegates were eager to learn more.

“I have seven bosses, all named Morin, but the last name does not guarantee they will be put in charge,” he noted. Each of them had to begin in the business working at a range of jobs, working their way up and proving their ability to take on added responsibilities. Another important requirement was that they all work outside the company for two years.

All this careful structuring of the second generation of ownership is necessary for a dealer the size of Patrick Morin. With 21 stores and sales of about $300 million, the company is one of Quebec’s leading home improvement retailers. Stores range in size from 15,000 to 40,000 square feet of selling space and employ a total of 1,300 people. The stores stretch from Valleyfield to Trois-Rivieres, mainly on the North Shore, and centred mainly in the larger communities.

The company is also on a concerted expansion trajectory. Since 2012, it has added seven locations, in a strategy that makes sure each new store is working well before embarking on a new location. “We have control of our growth,” Lampron said. He added that certain categories—and customers—are currently getting more attention. Seasonal and outdoor living have seen strong growth, while the company has been looking for ways to attract more women customers. In fact, the two are complimentary, as outdoor has proven to be a category driven strongly by women.

Just a month before the conference, Patrick Morin introduced online sales supported by in-store pickup. “And in 2018, we will have more things to introduce.” The company, he admits, can’t compete against the likes of Amazon. “We don’t have the budget. So we have to do something different. I can’t give it away yet, so stay tuned.”

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BuildDirect seeks cash, or buyer, as it enters creditor protection

VANCOUVER — Founder Jeff Booth resigned on October 31. That’s also the date that his online building materials company, BuildDirect, filed for creditor protection with the Supreme Court of British Columbia under the Companies’ Creditors Arrangement Act.

Established in 2012, the Vancouver-based company made headlines for selling large building products, everything from tiles and flooring to roofing, online. But over time, the company was a victim of its own success, and had difficulty keeping products in stock to keep up with demand.

In 2016, it moved from direct-to-consumer selling, with about 16,000 SKUs in stock, in favour of serving as an online marketplace, hosting products by other sellers. It raised its product offering to about 150,000 SKUs in the process. Companies can list for free, paying a commission to BuildDirect on each sale.

Today, a range of products, including decking, large appliances, bathtubs, moulding and millwork, and even heavy appliances, can be purchased on the BuildDirect website.

Since the October 31 CCAA filing, the company has managed to access US$7 million from an arrangement of US$15 million interim funding that had been negotiated before the bankruptcy proceedings. According to the latest details of the bankruptcy filing, the company has found investment assistance from Canaccord Genuity Corp. and Canaccord Genuity Inc., to help facilitate a sale or other refinancing.

A stay of proceedings has been extended until February 23, 2018.

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German hardware show promises new products, new technologies

COLOGNE, Germany — Canadians who make the trek to Germany next spring for Eisenwarenmesse – the International Hardware Fair will find more than just products. The show, billed as the largest trade show for hardware and tools in the world, is beefing up its information program to offer vendors and dealers alike a glimpse into the next steps for the retail home improvement industry.

From March 4 to 7, 2018, more than 2,600 vendors from dozens of countries will showcase their latest products across a whopping 1.5 million square feet of exhibition space. Up to 44,000 manufacturers, buyers, and business leaders will gather to discover the latest home improvement products and explore the economic trends shaping the industry.

Some highlights of the fair:

• A two-day e-commerce forum;
• A stage in the middle of the show floor that will feature speakers, including representatives from Ali Baba, eBay, Google, and Amazon;
• In conjunction with the German procurement and logistics association, BME, information sessions to help vendors work together to better streamline their logistics and distribution processes;
• A number of awards programs to recognize the best and most innovative new products.

Organizers point out that the day has returned to its four-day format to better accommodate the desires of exhibitors to fulfill all their meeting needs. The show is held every two years.

(For more information about the fair, contact Darrin Stern: d.stern@koelnmessenafta.com or 1-773-326-9925.)

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RCR seeks creditor protection to restructure finances and find buyer


BOUCHERVILLE, Que. — RCR International has entered into creditor protection under the Companies’ Creditors Arrangement Act. The filing was made on behalf of RCR International Inc. and its sister company in the U.S., W.J. Dennis & Company. Effective November 21, the companies have commenced restructuring proceedings and expect a similar filing in the U.S. through Chapter 15.

According Mario Petraglia, president and CEO, in a customer bulletin dated November 22, “We are pursuing this course of action in order to provide the companies with time to restructure their finances, while continuing normal operations. We have secured a $3 million debtor-in-possession financing facility from the Bank of Montreal, providing us with adequate liquidity to operate while we restructure our debt.” That includes seeking a buyer and Lincoln Partners Advisors LLC has been engaged as financial advisor “to perform a sales process of the companies to ensure the survival of the business as a going concern.”

In an interview with HARDLINES, Petraglia says the 70-year-old company was the victim of falling sales and an increasing debt load, “which resulted in tighter cash flow.” The company has cut costs, and its manufacturing facility in Longueuil, Que., has been closed temporarily since October.

Petraglia stresses that RCR and W.J. Dennis remain “very much in business and focused on securely positioning the companies and their stakeholders for a stable and successful future.”

RCR, and W.J. Dennis are owned by Austin, Tex.-based Peak Rock Capital, which will continue to support RCR through the process of finding a buyer. “We know there are interested parties. There are a people who have manifested their interest,” Petraglia says.

In the meantime, he stresses that it’s business as usual. No customers have been lost since the announcement, including the important Lowe’s business. “We continue to operate. We continue to take care of our customers.”

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Greg Drouillard, owner of Target Building Supplies in Windsor, Ont., has been honoured with the Industry Achievement Award by the Lumber and Building Materials Association of Ontario. In addition to operating a successful building centre, Drouillard, who is a member of the TORBSA buying group, has been a staunch supporter of the association through the years.

Derby Building Products, formerly known by the name of its flagship Novik brand, has announced the appointment of Ralph Bruno to succeed François Giroux as CEO. Bruno joined the company in 2014 as president. He was national sales manager at Trex Co. in the early ’90s and started Azek Building Products in 2000 with backing of owner Clearview Capital, now the stakeholder of Derby. He remained with Azek as president until 2009.

Suzanne Barwell has been appointed national account manager at Liteline Corporation in Richmond Hill, Ont. She was formerly at Osram Sylvania, where she spent a decade in a similar role. In her new role, she is managing major national retail accounts, including Home Hardware, Wal-Mart, TruServ, Federated Co-operatives, RONA, and Coop fédérée. (sbarwell@liteline.com)

Lowe’s has appointed Richard D. Maltsbarger, currently chief development officer and president, international, as chief operating officer effective February 3, 2018. In his new role he will continue to report to Robert A. Niblock, chairman, president, and CEO. Maltsbarger succeeds Rick D. Damron, who is retiring.

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CLASSIFIED ADS

Sales Service Representative(Quebec, Quebec City) 

Sherwin Williams Consumer Brands Group Canada 

Sherwin-Williams is the largest paint and coatings company in the world. With $15.8 billion in sales, more than 4,100 stores and 140 manufacturing and distribution centers worldwide. Our 60,000 employees across the globe are diverse, innovation and passionate. With a variety of rewarding and challenging opportunities, Sherwin-Williams is a great place to launch and grow a career. Find yours and join us today. 

Job Responsibilities: 

This position is required to grow top lines sales at assigned home improvement stores within a geographic territory. Provide merchandising and sales support at Home Centre(s) that carry Consumer Brands products. Conduct product knowledge training and in store demo’s . Shelf maintenance including down stockings, inventory management and installing/maintaining promotional displays. Complete weekly paperwork including expense reports and call schedules. Utilize the CRM system to document sales calls and store visits. Sales Service Representatives will also gather and document competitor intelligence information in the CMR. Ability to conduct product demos to support selling process. 

As Consumer Brands sales professional you will have the opportunity to drive sales, and grow your territory and contribute to the achievement of organizational goals. You will learn a wide variety of selling related skills including planning and conducting effective sales calls, identifying and exceeding customer needs and sales opportunities, inventory systems knowledge, management, expense management, as well as promotional selling and basic marketing. 

Job Requirements: 

Prior experience in Customer Service, Sales, Marketing or other Business related field. 
Ability to work a flexible work schedule which includes evening and weekends. 
Must have a valid driver’s license. 
Strong Organizational & Communication Skills. 
Must be legally authorized to work in the country of employment without needing sponsorship now or in the future for employment visa status. 
Must be at least 18 years of age. 
Must have a valid driver’s license, access to a vehicle and insurance. 
Must be able, with or without reasonable accommodation, to lift and carry up to 50 lbs. 
Must be able, with or without reasonable accommodation, to work all schedule hours, which may include evenings and weekends. 

The territory for this position includes Quebec City, Lac St-Jean, Cote-Nord and Bas du Fleuve et Gapesie. 

Preferred that applicant lives near Quebec City. 

Education Required: 

High School Diploma or Equivalent 

Preferred Qualifications: 

Bachelors Degree Preferred 

You can search https://jobsearch.sherwin.com/en/job-description?jobNumber=17000G0Q

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Home Hardware Building Center is looking for a managing partner in a new business in Central British Columbia.  We are looking for a person to grow this business with and ownership will be discussed.

We are looking for an individual that that has had at least 5 years of management, which includes hiring,  wage costing, merchandising, product ordering and inventory management, blue print estimation.

The incumbent will have excellent organizational and problem skills as well as the ability to develop and maintain a positive rapport with staff and customers.

Please forward resumes to grant@centralpg.ca

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