Colabor Group Inc. announced a plan to rationalize and optimize its operations. The plan, approved by the board of directors, is intended to further improve its operating efficiency and profitability despite difficult business conditions in the foodservice distribution industry, and to complete the integration of its acquisitions of recent years. This plan follows up the board of director's decision, announced on March 12, 2015, to suspend the declaration of a dividend in order to deploy more financial resources to its operations, while applying excess funds to debt repayment. The rationalization measures are expected to result in cost reductions estimated at more than $6.0 million annually, before taxes. These savings will be progressively realized during fiscal 2016 and will take full effect during fiscal 2017.

The plan encompasses most of its divisions and consists mainly of centralizing and consolidating certain operations at the head office of the company or of its divisions. It will entail the elimination of approximately 120 jobs, or 8% of the company's headcount. In addition to a reduction of current personnel, some vacant positions will be eliminated.