Quebec Furniture Sector Hit by Multiple Closures as Trade Pressures Mount

The closure of several major furniture manufacturers in Quebec, including South Shore Furniture and eSolutions Furniture Group, is intensifying concerns about the stability of Canada’s secondary wood manufacturing sector, as unions and industry groups warn of mounting trade pressures and job losses.

South Shore Furniture has ceased operations after 86 years, shutting down facilities in Sainte-Croix and Coaticook and affecting nearly 90 workers. The closure follows closely on the heels of Bestar’s Lac-Mégantic plant shutdown, bringing total job losses tied to the two companies to approximately 120 unionized workers.

Unifor, which represents affected employees, described the closures as part of a broader pattern impacting Quebec’s manufacturing base. The union pointed to sustained trade pressures, including low-cost imports and shifting global trade flows, as contributing factors. It also cited the impact of U.S. tariff policies, which have redirected foreign products into the Canadian market, increasing competition for domestic producers.

“These closures are not isolated incidents,” said Unifor Quebec Director Daniel Cloutier, noting that long-established companies are disappearing in succession. He emphasized that while tariffs and market access challenges play a role, the growing presence of underpriced imports, particularly from Asia, is placing significant strain on Canadian manufacturers.

Compounding the situation, eSolutions Furniture Group, which includes Bush Business Furniture, Bush Furniture, and Bestar, has halted all manufacturing operations. The company’s lender, Fédération des caisses Desjardins du Québec, is seeking court approval to appoint a receiver to oversee asset liquidation. The move follows years of financial deterioration, with the company unable to meet interest obligations for over a year.

eSolutions attributed its decline to multiple factors, including reduced post-pandemic consumer demand, increased offshore competition, U.S. tariffs introduced in 2024, and ongoing liquidity challenges. Despite efforts to restructure or sell the business, no viable path forward was identified.

The closures are expected to have ripple effects across the supply chain. Unifor highlighted potential impacts on panel supplier Tafisa in Lac-Mégantic, underscoring the interconnected nature of the industry and the risk to additional jobs beyond direct manufacturing roles.

In response to growing industry pressure, the federal government has launched a safeguard investigation into imports of key wood products, including cabinets, vanities, hardwood flooring, and engineered wood furniture. The Canadian International Trade Tribunal has been tasked with determining whether increased import volumes are causing or threatening serious injury to domestic producers, with findings due by January 2027.

Industry stakeholders have welcomed the investigation but argue that immediate measures are needed. The Canadian Wood Products Alliance has called for provisional tariffs to provide short-term relief while the inquiry proceeds, warning that delays could lead to further closures and job losses.

Unifor is urging both provincial and federal governments to take coordinated action, including anti-dumping measures, stronger trade protections, and policies that support domestic procurement. The union also called for a broader industrial strategy to stabilize and rebuild the wood manufacturing sector.

The recent wave of closures highlights the vulnerability of Canada’s furniture manufacturing industry amid evolving global trade dynamics, raising concerns about long-term competitiveness and the preservation of skilled manufacturing jobs.