Nova Scotia

Temporary layoffs at Scanwood

A financially troubled furniture manufacturer in Dartmouth is shutting down for at least a week in an effort to save money.

A financially troubled furniture manufacturer in Dartmouth is shutting down for at least a week in an effort to save money.

Scanwood Canada CEO Bo Thorn said the company is laying off nearly all of its workforce because it cannot obtain the components it needs from Europe.

"This is highly, highly unfortunate," he told CBC News. "This was not anticipated."

The company's 220 unionized employees learned of the pending layoffs Wednesday morning. The shutdown is expected to run from March 11 to 18.

Thorn said only a skeleton staff will be at the plant, which assembles cabinets for Ikea, its only customer. He said almost every manager will be laid off.

"We are trying to save cash," he said.

The financially insolvent company has been in court several times this year in an effort to obtain protection from creditors. It owes more than $12 million.

Scanwood has promised a plan to satisfy its creditors by the end of the month. The company is in the midst of a $6-million modernization to make it more efficient.

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