September 14, 2015 by STAFF REPORT
Modus Structures Inc. is the winner of the second edition of the BDC Entrepreneurial Resiliency Award, presented by the Business Development Bank of Canada (BDC) in partnership with the Turnaround Management Association, Montreal Chapter (TMA-Montreal).
Modus CEO Cal Harvey and CFO Tom Payne accepted the award earlier this week during a special event held at Club Saint James in Montreal. The BDC Entrepreneurial Resiliency Award recognizes a Canadian company that emerged stronger after undergoing a business turnaround or pivotal event in the past year.
After experiencing significant losses in in the aftermath of the 2008 recession, Modus executed a highly successful turnaround that not only preserved its existing 93 jobs, but also fueled strong growth. The company, which makes modular buildings for schools (including 2,000+ classrooms housing 62,000 students) and the telecommunications and commercial sectors, now employs over 160 people, a 76 per cent increase from its 2011 payroll.
“Modus’ story is a business inspiration—showcasing great resiliency, imagination and perseverance in the face of serious adversity,” said René C. Leduc, Vice President, Business Restructuring Unit at BDC. “BDC’s business restructuring group works closely with all stakeholders involved and accompanies entrepreneurs during the difficult turning point by providing unique financing services and appropriate support to help them stay in operation and regain a strong momentum.”
“Amongst a very strong field of applicants, Modus’s case stood out,” said Michael J. Hanlon, president of TMA-Montreal, and a partner at the law firm of McMillan LLP. “This success story shows the value of a well-conceived and well-executed turnaround plan. Our members are uniquely suited to assist entrepreneurs in preparing such plans, and in identifying and avoiding the obstacles which can cause companies to falter.”
“Modus achieved its remarkable turnaround by diversifying its clientele, selling non-core assets, reducing inventory and other streamlining,” said CEO Cal Harvey and CFO Tom Payne. “There was no secret sauce or pixie dust in what we did. We focused on a common sense business plan and relentless execution,” Payne said. “BDC’s patience and support let us develop and implement our turnaround strategy in an orderly and efficient manner.”
BDC is the only bank dedicated exclusively to entrepreneurs. With more than 100 business centres and over 32,000 clients across Canada, it offers loans, investments and advisory services. BDC’s purpose is to support Canadian entrepreneurship with a focus on small and medium-sized businesses
The Turnaround Management Association is the leading organization dedicated to turnaround management, corporate restructuring and distressed investing. Established in 1988, the TMA celebrates its 25th anniversary with more than 9,300 members in 52 chapters worldwide, including 32 in North America. Members include turnaround practitioners, attorneys, accountants, investors, lenders, venture capitalists, appraisers, liquidators, executive recruiters and consultants as well as academic, government and judicial employees.