MONTRÉAL, Aug. 07, 2025 (GLOBE NEWSWIRE) -- Dorel Industries Inc. (TSX: DII.B, DII.A) today announced that on August 7, 2025, it again amended its asset backed loan (ABL) facility and term loan facility whereby Dorel’s lenders agreed to continue to forebear from enforcing their rights and exercising their remedies under both the ABL facility and term loan facility further to a default by Dorel relating to certain financial covenants. The initial forbearance period commenced on May 9, 2025 and has now been e ...

Group 1 - Dorel Industries Inc. has amended its asset backed loan (ABL) and term loan facilities, extending the forbearance period to September 16, 2025, allowing the company to avoid immediate enforcement actions by lenders due to a default related to financial covenants [1] - The company will receive an additional US$20.0 million in liquidity under the ABL facility to finance new inventory, while the total maximum availability under the ABL facility has been reduced to US$150.0 million [1] - As of June 30, 2025, Dorel had approximately US$92.0 million in borrowings outstanding under the ABL facility [1] Group 2 - Dorel is collaborating with two leading capital market advisors to restructure its balance sheet, aiming to support growth in the Juvenile segment and reorganize the Home segment [2] - The new financial structure is intended to replace the existing debt structure, which is no longer aligned with the company's operational needs [2] Group 3 - Dorel Industries operates in two distinct segments: juvenile products and home products, with annual sales of US$1.3 billion and approximately 3,500 employees across 22 countries [3] - The company’s juvenile product brands include Maxi-Cosi, Safety 1st, and Tiny Love, while Dorel Home offers a wide range of furniture through its e-commerce platform [3]

Core Viewpoint - Dorel Industries Inc. is undergoing a strategic shift to reduce the size of its Home segment, aiming for profitability by 2026 through a streamlined product line and the cessation of domestic manufacturing operations in North America [2][6][12] Business Operations Update - The Home segment will focus on profitable categories and eliminate unprofitable product lines, with a significant reduction in inventory planned by year-end [7][8] - Dorel Home is merging its sales, marketing, and product development with the successful Cosco division, transferring select high-performing SKUs to enhance efficiency [3][4] - The decision to cease manufacturing in North America is supported by an external review, expected to yield substantial savings and eliminate losses from domestic operations [6][12] Financial Performance - The restructuring is anticipated to improve earnings by the fourth quarter of 2025, with detailed cost and savings estimates to be provided in the upcoming earnings release [9] - Dorel Juvenile continues to show year-over-year earnings improvement, positioning the company for above-average earnings relative to peers [8][11] Long-Term Strategy - The company is engaging capital market advisors to re-capitalize its balance sheet, facilitating growth in the Juvenile segment and supporting the Home segment's reorganization [10][11] - The changes represent a significant shift in the company's operations, with a focus on returning to profitability and maintaining positive momentum in the Juvenile segment [12]