A report on December 11, 2007 said that Furniture maker Shermag Inc. had announced it will close four of its eight plants, throwing 320 workers in Quebec and New Brunswick out of a job.

The affected plants are the Dudswell and Cookshire-Eaton operations in Quebec, and the Edmundston and Saint-François-de-Madawaska facilities in New Brunswick.

The effect of factors such as the continued strengthening of the Canadian dollar, the crisis of the mortgage loans in the United States and its effect on furniture sales, as well as Asian competition, force Shermag to take strict measures such as the plant closures to return to profitability as quickly as possible.

In an interview reported by CanadaEast Online, Mr. Pichette, the chairman of Shermag''''s board was quoted as saying, ""We are trying to find the best way to keep on with the products we have now in Canada," and, "We can''''t continue a long time like this... We are like a dog chasing his tail. For years we have cut and reorganized... but all the things that we did we cancelled by the increase in the Canadian dollar."

In its most recent quarter, Shermag reported a $3.7-million loss and revenues of $27.2 million - down 40 per cent from a year earlier.

The closure will leave Shermag with 750 employees. In 2004, it had 2,400 workers.