Groupe Sélection, one of the largest owners of residences for the elderly, is in serious financial difficulty, has learned The Press.
Posted at 6:00 a.m.
According to our information, confirmed by two sources close to the parties involved, the precariousness of Sélection’s financial situation is such that its banking syndicate, which includes the National Bank, has appointed the turnaround firm PricewaterhouseCoopers to represent it. The accounting firm declined to comment.
For its part, Sélection commissioned the multinational firm FTI Consulting to find sources of funds and assess its options. FTI recently replaced Raymond Chabot in this capacity, according to two sources who follow the file closely.
As of September 30, Groupe Sélection had already received aid totaling $120 million during the COVID-19 pandemic, through Investissement Québec (IQ) — the investment arm of the Quebec government — in the framework of the concerted temporary action program for businesses (PACTE).
These loans have made Groupe Sélection the largest beneficiary of this pandemic aid, according to a compilation made in February 2022 by The Journal of Montreal.
Apart from Sélection, there are few or no managers of residences for the elderly (RPA) among the beneficiaries of the PACTE.
In a statement sent Sunday evening, the company did not deny information obtained by The Press that subcontractors were slow to get paid.
The impacts of the pandemic, inflation, and the successive increases in interest rates in recent months have had significant effects on the activities related to our accelerated growth plan. This situation [concernant les sous-traitants] is temporary.
Selection Group, in an email
Sélection operates more than 40 RPAs, which house most of the group’s 15,000 residents. Adding its other properties, Selection has more than 70 housing complexes in operation and under development in Canada and the United States, whose value exceeds $5 billion. Sélection is a partner in the multipurpose Espace Montmorency project in Laval. He is also a member of the consortium to redevelop the sector of the former Brasserie Molson in Old Montreal.
The company founded in 1989 by its president Réal Bouclin employs more than 5,000 people.
PHOTO ALAIN ROBERGE, THE PRESS
Réal Bouclin, president of Groupe Sélection, in 2019
Multiple departures
There have been many departures over the past year among the managers of Groupe Sélection.
For example, Richard Dansereau, president of the real estate division, and Heather Kirk, chief financial officer, left the ship in 2022.
A former member of Fiera, the Caisse de depot et placement and a New York private equity firm, Mr. Dansereau was hired last February, according to a press release from the company. He had to see to the development of Selection outside Quebec. His passage lasted only a few months.
In its response, Selection Group says that the turnover of leaders affects many organizations in a context of labor shortage and points out that 12 of its 16 senior leaders have been in their positions for more than five years.
The Group did not comment further on its financial problems.
With Richard Dufour and the collaboration of Francis Vailles, The Press