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xpedx to Close Canadian Facilities

Press release from the issuing company

xpedx today announced it will close its Canadian locations by the end of the year. The facilities supply printing papers and graphic supplies to commercial printers in Toronto as well as in the Western Canadian markets of Vancouver, Calgary and Edmonton.

"The closure of our Canadian facilities is a reflection of the structural decline in the print marketplace," said Mary Laschinger, president, xpedx. "Going forward, our xpedx growth strategy will focus on our U.S. and Mexico operations where our business is strongly positioned as we serve a wide variety of customers across multiple industries." xpedx Canada was established in Toronto in 2007, before the economic downturn, with a local headquarters and distribution center. Subsequent locations were established in Western Canada in 2009 with the acquisition of Gould Paper (Canada) Ltd. It was a different print environment at that time, the industry was forecasting growth, and xpedx saw the opportunity to grow business with U.S. customers operating in Canada.

"xpedx has international customers with operations in Canada that we will continue to support. We are evaluating service options with them on a case by case basis," said Laschinger. "We will also work closely with our Canadian customers to ensure a smooth, professional transition to alternative suppliers and to minimize any disruptions."

Outside of Canada, xpedx distributes a wide variety of print, packaging and facility solutions supplies and equipment to printers, manufacturers, retailers and commercial facilities. Today, xpedx is investing to grow its Print, Packaging and Facility Solutions segments in the U.S. and Mexico where it has a solid customer base.

"We recognize this is a very difficult decision affecting our employees, their families and the communities surrounding our Canadian facilities," added Laschinger. "Despite the talented and experienced team of employees we have across our Canadian locations, the abundant supply and significant decline in the print marketplace made it difficult for xpedx to grow in Canada."

xpedx Canada facilities will continue to fill customer orders until their date of closure. Four distribution centers in Toronto and Western Canada will close by Dec. 31, 2011. Walk-in store locations in Brampton and Markham will close by Nov. 30, 2011. The closures will affect approximately 110 employees across Canada.


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