A company whose pre-fabricated buildings are a familiar sight on farms across Western Canada has been granted creditor protection.
Cover-All Building Systems received approval for protection at a hearing in Court of Queen’s Bench in Calgary March 24.
Since 1993, the Saskatoon-based company has designed, manufactured and sold pre-engineered buildings consisting of a polyethylene fabric stretched over a steel frame.
The buildings have been widely used in agriculture for livestock and storage of such things as hay and equipment.
They are also used for a diverse range of purposes, including retail stores, warehouse and distribution centres, schools and athletic and entertainment facilities.
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There are an estimated 35,000 Cover-All buildings in use around the world.
In documents filed with the court, chief executive officer Nathan Stobbe said the company’s problems are a reflection of the worldwide economic downturn that affected almost every market in which the company did business.
“The recession has not only decreased demand but has resulted in the chronic overcapacity of building and building supplies, which has led to price competition among manufacturers,” he said.
In a news release, Stobbe said the company will maintain limited operations during the court proceedings and work on a restructuring plan with creditors, customers and dealers.
“Our goal is to emerge from the restructuring and resume operations as a leading building manufacturer as soon as possible,” he said.
The company claims a 25 percent market share in North America.
More than 400 employees, most of them located at the company’s manufacturing facility in Saskatoon, have been laid off.
Adding to the company’s recent woes has been a series of lawsuits arising from collapses of the company’s Titan line of buildings. The most notable occurred in the spring of 2009 when a Cover-All structure used as a practice facility by the Dallas Cowboys collapsed during a storm.
On March 19, the company issued a safety warning to customers with Titan buildings, saying some buildings may not meet maximum combined wind and snow load capacity.
It advised customers using Titan buildings to keep snow and ice off the roof, keep the internal temperature warm if possible to prevent a buildup of snow and ice and keep the building unoccupied during severe weather, including winds more than 56 km/h.
Customers are also advised to consult structural engineers to analyze the effect of local conditions on their buildings.
