In 1938, George Edward Shnier moved to Toronto from Manitoba to become the Canadian Sales Representative for two U.S. Rubber Products manufacturers; Sponge Rubber Products Co. of Shelton, Connecticut and Lee Tire and Rubber Co. of Conshohocken, Pennsylvania.
During World War II the supply of consumer rubber goods dried up because of military requirements. In an effort to meet the new demand, George set up a small assembly plant for sponge rubber “night vision” goggles with polarized lenses, for motorcycle dispatch riders.
In 1944, George's brother Irving joined him. Irving contributed to the building of their warehousing and distribution business by travelling and selling consumer and industrial rubber products to the wholesale hardware trade and department stores.
George and Irving had a younger brother Norman, who had enlisted in the Air Force during the War. After the war ended, Norman returned home with his accumulated pay of a few thousand dollars and invested that money in the business. A year later, in 1946, Norman came to Toronto and joined the business.
In 1947, the boys' father, Moses Shnier, was asked to open up a business in Winnipeg as a sub-agent for the Toronto Company. Moses was joined in 1948 by the youngest Shnier brother, Allan, and together, they operated the EAGLE DISTRIBUTING COMPANY.
About that time, a Mr. Fred Daley of Sponge Rubber Products Co. developed a means of manufacturing his sponge rubber in sheet form to be used as undercushion for carpet. In addition to being the agent for other Sponge Rubber Products Co. lines, the GEORGE E. SHNIER & COMPANY LIMITED was granted exclusive sales rights to this new undercushion, named Spongex Sponge Rubber Carpet Cushion. The SHNIER Company then turned the main thrust of its attention to the floor covering business.
The brothers persuaded Mr. Daley to set up a sponge rubber manufacturing plant in Canada to save on import duties. A new plant was built in Waterville, Quebec. The GEORGE E. SHNIER & COMPANY LIMITED developed grades and standards for Sponge Rubber Carpet Cushion that was used throughout North America.
During the 1950's, the company introduced the Monarch brand tufted broadloom carpeting into Canada. The carpeting was manufactured from cotton yarns, as well as from synthetics such as nylon and viscose. Monarch was a division of Barwick Carpets of Dalton, Georgia.
At this time, the SHNIER Company occupied premises on several floors of a building in downtown Toronto. In 1955, when the company was in need of more suitable premises and additional staff, brother Cecil left his investment business in Oklahoma and moved to Toronto to become a partner in his brothers' business. Cecil's first project was to coordinate the move to a modern warehouse comprising of 30,000 sq. ft. on one floor in the Toronto suburb of Weston, and to recruit additional employees.
After the new building had been completed, Sponge Rubber Products Co. offered the Shnier brothers the distribution rights for their foam rubber furniture cushioning. Foam fabricating facilities were set up in Toronto, Winnipeg and Montreal, forming a new division of the GEORGE E. SHNIER & COMPANY LIMITED (and later of GESCO INDUSTRIES INC.), that was eventually named GENERAL FOAM AND CUSHION.
In 1957 the company began a long and mutually rewarding relationship with the flooring division of the Armstrong Cork Co. (later re-named Armstrong World Industries, Inc.) Distribution rights to Armstrong resilient flooring began with Ontario and a couple of years later included Manitoba.
In 1962, EAGLE DISTRIBUTING LTD. of Winnipeg was merged into GEORGE E. SHNIER & COMPANY LIMITED and EAGLE's owner, Allan Shnier became the fifth brother to join the business partnership. Also in 1962, another brother, Philip, a professional Engineer, joined the business partnership in Toronto. Philip's years with the company were spent in operations, including overseeing the building of warehouse facilities across Canada.
1962 marked the only year that six brothers were operating the business together, as later that year, tragedy struck when George, the original founder, had a severe heart attack and died suddenly. In compliance with previously documented agreements, George's widow sold her shares to the remaining five brothers and they continued on as equal shareholders. Upon George’s passing, Irving became President.
In 1965, the company acquired the George R. Oake Co., a dry goods and flooring wholesale business in Edmonton and Calgary, and merged it into their company. For the next couple of years, the company distributed Domco hard surface flooring and Coronet carpet in Western Canada. GEORGE E. SHNIER & COMPANY LIMITED was at this time, not only the largest floor covering distributor in Canada, but it was also the fourth largest in North America as it remains today.
In the mid 60's the company initiated an expansion program that resulted in the construction of distribution centre’s in Regina, Saskatoon, Calgary and Vancouver, as well as the enlargement of existing centre’s in Montreal and Toronto. The brothers then built a new Head Office with a much larger warehouse on Lawrence Ave. West, also in the Weston suburb of Toronto, and in 1965 moved to the new location.
In 1969, in order to raise funds to finance growth, GEORGE E. SHNIER & COMPANY LIMITED became a public company with approximately 20% of the shares listed on the Toronto Stock Exchange under the name of GESCO DISTRIBUTING LTD. (Now GESCO INDUSTRIES INC.) GEORGE E. SHNIER & COMPANY LIMITED became SHNIER CO., a division of GESCO. All the funds raised from the public offering went into the treasury of the company to be used to finance growth.
Later in 1969, the company acquired the assets of the Trimont group of floor covering companies in Montreal and increased their overall distribution rights for the Armstrong line to include the Province of Quebec.
In 1970, the Winnipeg branch moved to a new facility and satellite warehouses were opened in London and Dartmouth, while the Saskatoon depot was closed.
In 1971 the company set up a division named CARDINAL INDUSTRIES as a parallel national distribution channel. This division sold Ceramics and allied products as well as hardware specialty products including "Protecto" floor runners and mats. In 1976 PHOENIX FLOOR AND WALL PRODUCTS was established, replacing the CARDINAL division.
The company began distributing Ozite needle punch floor coverings in both roll and tile form in Toronto in 1972. In 1974, the distribution of these products was expanded to the Ottawa region. During the 1970's the company expanded its distribution of Ozite products to include all of Canada.
In 1973 Norman Shnier was appointed CEO. Two new depots were opened, Ottawa and Thunder Bay, in 1974. Also, the company moved to larger facilities in Dartmouth and Edmonton. The Winnipeg branch of GENERAL FOAM AND CUSHION moved into its own separate premises. By this time SHNIER CO. had nine distribution centres and offices.
In 1974 the company introduced the GESCO DISTRIBUTING LIMITED Employee Participation Plan providing a profit sharing opportunity for its 450 employees.
SHNIER CO. introduced its own brand, RICHMOND CARPETS, in 1975. This range of broadloom carpeting was and continues to be engineered and designed by SHNIER CO. and custom manufactured for the company by leading manufacturers in Canada and the United States affording "state of the art" machinery. The company also inaugurated the RICHMOND CARPET CLUB, a merchandising and automatic sampling program for independent flooring dealers. This Program was a first of its kind in Canada and perhaps North America.
In 1975, two of the second generation Shnier’s joined the business, Cliff, Allan's son and Bonnie, Irving's daughter. Irving then retired from active involvement and was appointed Chairman of the Board. Norman was appointed President.
The EAGLE DISTRIBUTING division which had been merged into G.E. SHNIER sometime earlier, was re-born and took over the responsibility for distributing the Armstrong products, Ozite carpets, and in 1979, its own brand of carpet named WESTON CARPETS.
In 1979, it became apparent that while none of the Western branches by themselves could generate enough volume to make up full shipments, the five branches together, could make up one full trailer load at least once every two weeks. Once the goods arrived in Winnipeg, the goods were re-assembled for shipment to the other western branches. This shipping and re-assembly function was called the GO (GESCO Operated) West Division. Eventually a similar operation, GO East was set up in Toronto. At this time, the GO Service owned its own fleet of trucks. While the concept continues to this day, in 1990 this division outsourced the ownership of the actual trucks.
As a result of the success of the previously launched private brand of RICHMOND CARPETS, in 1978 the company introduced Polystar Urethane Carpet Cushion, to complement its Premium Sponge Rubber Carpet Cushion. Polystar was succeeded by the company's own brand, RICHSTEP in 1985, and subsequently RICHMOND Urethane Carpet Cushion.
Cecil Shnier retired in 1978 and in 1979, Philip's son, Mark, was the third member of the second generation to join the company.
From the time it moved out of its original Toronto premises, the company has always availed itself not only of the most modern warehousing methods, but also of the most automated data processing procedures. By 1979 company operations were put completely "on-line", and benefits of this new system became apparent immediately. An order entry system was installed permitting a customer service representative in any branch to access the inventory in any other branch, causing that branch's printer to write up an order for shipment. SHNIER CO. was the first Canadian floor covering distributor to go "on-line", and today continues to have a state-of-the-art floor covering computer system.
As the company required more space in 1979, the Winnipeg branch of GENERAL FOAM AND CUSHION moved to larger premises, as did the Edmonton branch of SHNIER CO.
In 1980, the company rescued a faltering carpet mill, and re-named it CLAIRVILLE CARPET MILLS. CLAIRVILLE manufactured products to complement the out-sourced RICHMOND residential and commercial product range but had a special ability to also produce custom commercial broadloom. This manufacturing operation was located in Rexdale, about a fifteen minute drive from SHNIER CO.'s head office location.
From 1980 to 1983, through a wholly owned subsidiary, GESCO entered into an agreement to operate the Floor covering Departments in eleven stores of Junior Department Store Chain in Ontario.
It was in 1981 that the corporate name of GESCO DISTRIBUTING LTD. was changed to GESCO INDUSTRIES INC. (LES INDUSTRIES GESCO INC.).
In conjunction with the difficult economic times of the early 80's, the company sold GENERAL FOAM AND CUSHION in 1982 to its main supplier, Woodbridge Foam Corporation, in an effort to turn their resources more intensely to the floor covering part of the business. As a further cost saving measure, the EAGLE and SHNIER divisions in Quebec were merged into one, SHNIER CO.
In 1982, Philip Shnier was appointed President, Norman was appointed Chairman, and Irving became Honourary Chairman. Norman's son, Paul, joined the business in 1983.
In addition to having a sophisticated system for internal use, the company developed a system for customers known as COLA (Customer On Line Access), which enables customers with the ability to check stock and place orders 24 hours per day, 7 days per week. This program was introduced in 1984. Coinciding with this technological advancement, the company also went on line internally with a state-of-the- art accounts receivable system.
In 1985 the remaining divisions of EAGLE and SHNIER were merged under SHNIER CO. Recovering from the economic difficulties of the early 80's, the company consolidated by closing branches in Regina, Thunder Bay and Edmonton and vacated the overflow space they had maintained in the original location in Toronto. On the sales growth side, PHOENIX FLOOR AND WALL PRODUCTS expanded their sales efforts beyond the Ontario market to include Quebec.
Also in 1985, CAMDEN CARPETS INC. was established. The CAMDEN CARPETS concept was similar to a franchise concept, offering total store merchandising and advertising support along with various other support services, in return for the store's total commitment to displaying and selling SHNIER CO. products only.
For a two and a half year period, 1985-87, John Macdonald was CEO of the company, working with the President, Philip Shnier and other senior members of the second generation to lead the company.
1986 saw the launch of a new internal Quality Program which the company named QUEST. QUEST stood for QUALITY, EXCELLENCE, SERVICE, and TEAMWORK. This Program was intended to involve every employee in the continuous effort to operate with zero defects, with the purpose of improving service, increasing sales and lowering costs. The program exists today as the Step Ahead program, and further encourages SHNIER employees to be Innovative, Easy and Flexible.
As the 80's continued, the RICHMOND carpet lines continued to be sourced to a greater degree than ever from the company's own CLAIRVILLE CARPET MILLS. This led to the logical move of renaming the mill to reflect this tighter dependency on the RICHMOND product lines. In 1988 the mill was renamed RICHMOND CARPET MILLS. However, the CLAIRVILLE trade name continued to exist and was used for carpet manufactured specifically for sale in the United States. Along with the renaming of the mill, in 1989 SHNIER's RICHMOND commercial carpet sales force moved their headquarters from head office to the mill location in Rexdale, and was given a separate identity as "RICHMOND COMMERCIAL".
Until 1989, each of the senior Shnier brothers had been Directors of the Corporation. In 1989, Irving stepped aside and his daughter, Bonnie Shnier Moncik, was appointed to the Board. Irving became a Honourary Director.
In 1989, SHNIER CO. acquired the Armstrong distribution rights for the Maritimes. During the next few years, the lower to mid-priced carpet lines previously named WESTON, underwent some expansion and name changes, first to EAGLE in 1989, and then in 1990 to VANTAGE. Also in 1990, the company ceased distributing the Ozite line and launched its own private label runner and seasonal carpet programs under the names INTEGRA and SUNQUEST.
In June 1990, as Philip Shnier retired from the active involvement, Bonnie Shnier Moncik was the first member of the second generation to be appointed President. Philip was appointed Vice Chairman.
The RICHMOND CARPET CLUB (RCC) introduced a new fashion-oriented display system in 1990, followed in 1991 with the launch of a tighter alignment program for committed RCC dealers known as the RICHMOND FLOORSTYLE STUDIO group.
Cecil's son, Maury, joined the company in 1991 and each family now had a member of the second generation working in the business.
1991 was a significant year for the Canadian economy in general as the FST (Federal Sales Tax) component incorporated into Canadian manufacturer's pricing was eliminated, and replaced with the GST (Goods and Services Tax), a tax imposed on consumers at the retail level. This taxation method had a direct effect on the company's sales and profit levels as sales automatically decreased by approximately 13.5% and profits declined relating to the loss of margin on those sales dollars. Compounding this situation, a nation-wide economic recession was acknowledged.
Concurrently with these difficult times, there was an unexpected steady increase of U.S. imported carpeting into Canada. After a lengthy investigation, Revenue Canada ruled that U.S. carpet mills had in fact been breaking the trade rules by "dumping" products illegally into the Canadian floor covering market. While the U.S. Companies appealed the ruling in 1992, it was upheld.
The company consolidated its Ontario distribution facilities by closing its London and Ottawa warehouse depots. Order entry for those locations was consolidated into the Toronto customer service department, with some of the French speaking Ottawa customers switching their order entry location to the Montreal branch.
Also during 1992, when other companies were pulling back, SHNIER CO. designed and implemented the first advertising campaign of its kind by floor covering suppliers, for its FLOORSTYLE STUDIO dealers. Millions of home owners received RICHMOND advertising booklets several times a year, delivered directly to their homes, with their local FLOORSTYLE STUDIO dealer's name on the back page.
In an effort to lower costs in 1993, customer service order entry points were consolidated in Western Canada and centralized in Calgary. As a result of a decision to restructure the company, GESCO sold its PHOENIX FLOOR AND WALL PRODUCTS division in 1993, focusing its attention on the SHNIER CO. division.
In 1993, Cecil stepped aside and his son, Maury, was appointed a Director of the Corporation. Also in 1993, Allan Shnier, the youngest brother in the first generation, retired from active involvement.
In response to the company's strategic decision to focus all resources on the marketing, merchandising and logistical functions associated with the floor covering industry, GESCO sold the assets of its manufacturing facility at RICHMOND CARPET MILLS to National Fibre-Tech, Inc. on March 7, 1994. GESCO kept the rights to the RICHMOND brand name.
1995 was a significant year, technologically, as efforts were dedicated to the preparation for the conversion of the company's computer system from its Bull (originally Honeywell) main frame environment with its own internally programmed software, to the new comprehensive Dancik software program designed specifically for floor covering distributors. The company converted systems on October 1, 1995, the first day of the company's 1996 fiscal year.
During this time, Armstrong granted the SHNIER CO. sole distribution rights to its products in the Maritimes, making this the first region in Canada to have the historic dual distribution situation eliminated.
Also in 1995, Perstorp, a Swedish manufacturer of laminate flooring, granted exclusive national distribution rights of its Pergo products to be launched during the 1996 fiscal year. This flooring category was new to Canada.
There was a major sales force reorganization in 1995 as the sales management and representatives were divided by product with one group carrying only the Armstrong product line and the other group carrying all other products.
Other 1996 marketing introductions included the RICHMOND DECOR CARD consumer credit card, specifically for RICHMOND FLOORSTYLE STUDIO members, and the introduction of RICHMOND area rugs. During 1996 exclusive national distribution rights were acquired for the Anderson Hardwood flooring line and the Images Hardwood line. While these lines were launched simultaneously during 1997, the company worked on the development of its CASA ROMA ceramics program, preparing for its launch in 1998.
In June, 1997, Bonnie Shnier Moncik chose to relinquish her position as President and was appointed Vice Chairman, maintaining an active full time role in the business. Edward duDomaine joined the company at that time as President and CEO.
In 1998, the company's alignment programs for independent dealers, the RICHMOND CARPET CLUB and the RICHMOND FLOORSTYLE STUDIO programs were launched under the new name, FloorsFirst, by RICHMOND. This new name with changes to the program better reflected the SHNIER CO.'s expanded floor covering product range, as well as its newly defined role as a total floor covering solutions company.
Also in 1998, Armstrong World Corporation completed their North American plan to grant exclusive distribution rights to their products in each region. Up to that date, SHNIER had dual distribution rights in Alberta, Manitoba, Saskatchewan, Ontario, and Quebec, and sole rights in Nova Scotia, New Brunswick and Prince Edward Island. Armstrong made the decision to reduce their distributors in Canada from three to two, and granted the SHNIER CO. exclusive rights to their products in the Eastern Canadian Provinces of Ontario, Quebec, Nova Scotia, New Brunswick and Prince Edward Island. While the rights to the three Western Provinces were withdrawn from SHNIER CO., the company netted ahead in sales with this new arrangement.
During 1999 the Company reconfigured iCOLA (Customer On Line Access) for full use on the internet, and launched a new business to business site, and consumer website. The Company also consolidated its customer service departments from various regional branches across the country into two centralized customer service centers, one in Toronto and one in Montreal.
In March, 1999, Armstrong World Industries added its DLW linoleum line and its new laminate program to the Company exclusively for eastern Canada (Ontario, Quebec and the Maritimes). An additional proprietary ceramic line under the San Marco brand was introduced later that year.
In April 2000, Milliken Industries awarded SHNIER CO. exclusive rights to market and sell their carpet, runner, rug and accessory programs nationwide. That year the Company secured exclusive national distribution rights for the Marazzi Tecnica line of commercial ceramic products.
Also in 2000, after 35 years in the Lawrence Avenue location in Toronto, the Company moved its Head Office to a brand new, state-of-the-art 255,000 square foot logistics centre at 50 Kenview Blvd. in Brampton, Ontario. This custom designed building was complete with 35,000 square feet of office space, several meeting and conference rooms, a modern showroom, and well designed pick up and delivery areas supported by 38 shipping and receiving doors.
In March 2000, the Shnier Family proceeded with the privatization of the Company, purchasing all outstanding shares held by the Public. The original purpose for going public was no longer relevant, and alternative financing sources had become more readily available. Many of the benefits of being a Public Company had become outweighed by the costs and regulatory constraints imposed on closely-held Public Companies.
2001 was significant for our dealer alignment program as the company re-launched the Floor covering Solutions Alliance program under the new FloorsFirst banner. In spring of 2001 SHNIER held the first FloorsFirst Summit’s, one in Toronto and one in Calgary. This convention was designed to provide SHNIER’s most aligned customers with the opportunity to have input into the future development of products, programs and services, as well as industry education. The annual Summit has since grown to be Canada’s largest floor covering convention and hosts over 450 attendee’s each year.
In March 2002, Clifford Shnier left the employment of the Company. Clifford remained as a Director of the Corporation for the following twelve months.
FLEX 5 Logistics Inc., a new operating division, was created in 2002, to leverage logistics expertise and utilize the professional Kenview facility and resources.
The Company introduced a new private label LAURENTIAN hardwood line in the latter part of 2002, closely followed by the introduction of a complimentary private label LAURENTIAN laminate line in 2003.
The EAGLE Division introduced CGC’s Fiberock underlayment throughout Ontario, Quebec and the Atlantic Provinces.
During 2003, the Company began to develop its recently introduced Integrated Warehouse Management System, working toward a more automated warehouse.
March, 2003, witnessed a change in the shareholdings of the GESCO INDUSTRIES INC., as the Irving, Cecil, Norman and Philip Shnier families reconfirmed their commitment to the Company by purchasing the shares of GESCO previously owned by the Allan Shnier family. This led to a change in the Board of Directors as Clifford resigned and the Board of Directors continued to be comprised of the other incumbents, Philip Shnier, Bonnie Shnier Moncik, Paul Shnier and Maury Shnier.
A new flooring category, Wicanders Cork, was introduced by the Company in 2004. As well, a new merchandising display system and SHNIER SHOWROOM ADVANTAGE (SSA) merchandising program were introduced to retailers as SHNIER upgraded and modernized retailer’s showrooms.
A sample fabrication department was initiated in the Brampton facility during 2004, in order to more immediately and more effectively meet some of the more urgent sampling requirements of customers.
During 2004 the Company continued to develop its Integrated Warehouse Management System at its Brampton head office location to the point of having this warehouse operational with wireless Radio Frequency (RF) Scanners.
In 2005, keeping in step with the global sourcing trends, SHNIER expanded sourcing of Hardwood to Europe, Asia and South America and sourcing of Ceramics in Europe and Asia.
In June, 2005, sparked by strong growth of SHNIER’s sales in the BC market and increased sourcing from the far east, the Company moved into a larger facility in Vancouver which had double the warehouse space and twice the number of shipping doors.
During 2005 SHNIER forged a strategic alliance with J&J Industries of Dalton Georgia, one of North America’s leading Commercial Carpet Mills. SHNIER obtained exclusive rights to all J & J product sales made within Canada. This alliance allowed SHNIER the opportunity to increase their foothold into the commercial specifiable marketplace.
In 2006, the Shnier Co. announced an agreement with Armstrong World Industries to be the exclusive distributor in Central and Eastern Canada for Robbins Hardwood flooring products.
In February 2007, the Shnier family sold all ownership interests in Gesco Industries Inc (“SHNIER”) to an investor group led by Ironbridge Equity Partners Inc. of Toronto. Ironbridge Equity Partners Inc. invests in leading Canadian middle market businesses in a broad range of industries including manufacturing, distribution, consumer and business products and services. Ironbridge’s investment team has extensive financial and operating experience working together as an active partner with top management teams.
In November 2007, Tandus, a leading North American floor covering manufacturer headquartered in Dalton, Ga., and SHNIER jointly announced a new partnership. Under this new agreement, SHNIER became the exclusive marketer, seller and logistics provider for all Tandus Crossley brand residential marketed under the “Crossley At Home” brand.
In June 2008 SHNIER discontinued its exclusive representation of the Pergo brand in Canada and announced a new partnership with Kaindl Flooring GmbH (the corporation) Salzburg, Austria, to exclusively supply a new laminate flooring collection under the Richmond brand.