Closure of Cornwall furniture manufacturer to cost 300 jobs

The impending closure of a Cornwall, Ont., furniture manufacturer will leave 300 people without jobs, as the city's mayor warns the layoffs are an early sign of the turmoil that threatened U.S. tariffs could inflict on the local economy.

After 55 years in business, Ridgewood Industries will close in September, parent company Dorel Industries announced last month. 

"The elimination of the domestic manufacturing operations based in Cornwall," was part of a "strategic shift," the company said in a statement.

The decision was not taken lightly, said CEO Martin Schwartz, who explained "it is the only feasible course of action to return to profitability."

Cornwall Mayor Justin Towndale said Schwartz had indicated that "the U.S. economy as a whole is responsible for that closure."

Closure 'heartbreaking'

The closure of such a major employer had prompted fear in Cornwall, Towndale told CBC's All In A Day on Wednesday.

"Three-hundred people is a significant number of people in our community," he said. "You're talking about generations of people that have worked there."

The closure was "heartbreaking" for the local community, according to Angela Bero, general manager of the Cornwall and Area Chamber of Commerce.

"I hope we don't see this continuing with multiple closures within organizations and businesses," she said. 

But with the threat of tariffs affecting business confidence, "it's just hard times right now," she said. 

As a border city, Cornwall is particularly vulnerable to any changes in trade with the United States, with one in three local businesses engaged in cross-border trade and commerce, Towndale said.

Looming threat of tariffs

U.S. President Donald Trump first announced sweeping 25 per cent tariffs on Canadian goods in March, before walking back the announcement to exclude goods that comply with the Canada-United States-Mexico Agreement (CUSMA). As the countries negotiate a new trade agreement, Trump last week threatened to impose a 35 per cent tariff on all Canadian goods on Aug. 1. 

So far, Cornwall has not been greatly affected by the threatened tariffs, Towndale said, but this may be changing. 

"We have seen an impact within the last couple of weeks," he said, citing the closure of Ridgewood Industries as an example. 

The city  is now trying to protect itself from the trade war by rewriting procurement policies to favour Canadian and local companies, Towndale said. 

Meanwhile, Employment Ontario has activated its rapid re-employment and training service to help Ridgewood workers retrain and find new jobs. 

"Together, we are making sure Cornwall workers have the tools and resources they need to find new employment," said Nolan Quinn, the MPP for Stormont–Dundas–South Glengarry, in an emailed statement.