Deco Labels

Last updated
Deco Labels and Flexible Packaging Limited
Type Private
IndustryLabels
Founded1962
Founder
Headquarters
Etobicoke, Toronto, Ontario
,
Canada
Key people
Website https://decolabels.com

Deco Labels and Flexible Packaging Limited (also known as Deco Labels and Tags) is a Canadian label company, specializing in pressure-sensitive labels for plastic-wrapped grocery products, and based in the Etobicoke district of Toronto, Ontario. It is primarily known for its association with the Ford family of Ontario politicians, including Member of Provincial Parliament Doug Ford Sr., Toronto Mayor Rob Ford, and Ontario PC Party Leader and Premier of Ontario Doug Ford Jr. It has annual sales of approximately $100 million per year. [1]

Contents

History

Deco was founded in 1962, by Doug Ford Sr. and Ted Herriott. [2] The company was originally a Toronto location for Avery labels, but quickly separated from its parent company. [2] In 1965, Herriott left the company, over a dispute whether it should expand into the tag business. [2] In the following years, it experienced significant growth and success, under the leadership of Doug Sr. [2]

In the 1995, Doug Sr. became MPP for Etobicoke—Humber, and his sons Doug Ford Jr. and Randy Ford assumed control for day-to-day operations of the company. [3] In 1999, the company opened a branch in Chicago, led by Doug Jr. The branch eventually achieved $11 million in annual sales. [3] Further, less successful operations in Ohio and Florida followed. In 2002, Doug Jr. became president of the company, replacing his father. [3] In 2006, Doug Sr., nearing his death, divided up the company, leaving 40% to Doug Jr, 40% to Randy and 20% to Rob Ford (the third brother). [3]

In 2008, Deco purchased Wise Tag and Label, a New Jersey tag business. The acquisition was not successful, and the firing of Wise Tag's manager led to a 2012 lawsuit. [3] In 2010, Doug Jr. was elected Toronto City Councillor (replacing his brother Rob), and Randy took control of day-to-day operations of the company. Former Deco employees suggest that the company was well-managed under Doug Jr., but that the company declined under Randy's leadership. [4] The Toronto division has also struggled to deliver orders on time. [3]

In 2011, Doug Jr. and Rob allegedly used their positions as city councilor and mayor to benefit Deco, in connection with two clients of the company, RR Donnelley and Apollo Health and Beauty Care. [5] An investigation was launched in 2014, and concluded that Doug Jr. broke the code of conduct. [5] In 2018, after being elected Ontario PC leader, Doug Jr. said that he would put his ownership stake in Deco in a trust if elected premier in the upcoming election. [6]

In June 2018, Renata Ford, Rob Ford's widow, launched a $16.25 million lawsuit against Doug and Randy Ford, a few days before the provincial election in which Doug was elected premier. [7] The lawsuit alleges that Doug and Randy were bad managers of Deco Labels, and were guilty of various financial improprieties in their role as trustees of Doug Sr's estate. According to the suit, Deco lost $5.5 million in the six years before 2018, from a total value of $10 million in 2006, due in part to various acquisitions. [7] In order to shore up the company's finances, the lawsuit alleges that the Ford brothers sold other investments owned by Doug Sr's estate. [8] As a result of these activities, the estate declined considerably in value, to the loss of Renata. [8] Doug and Randy deny the allegations, suggesting that they are "completely false". [7]

Business

Deco specializes in producing labels for consumer products, especially in the grocery sector. [9] It also produces labels for the City of Toronto government. [3] Deco is headquartered in Rexdale, Ontario, with an American office near Chicago, Illinois. [10] It has a 70,000-square foot production facility in Toronto, and a 45,000-square foot facility in Chicago, with a total of 200 employees. [9] The Chicago division was sold to Resource Label Group of Franklin, Tennessee, a portfolio company of alternative investment manager Ares Management Corporation, in October 2022. [11]

As of 2017 the company was jointly owned by Doug Ford Jr. and Randy Ford. [9] According to the June 2018 lawsuit, Doug owned 100% of the Chicago branch, while Randy owned 100% of the Toronto branch. [12] Regulatory filings by Doug Ford Jr. in May 2018 suggested that he was the sole owner of the "Deco Labels and Tags", also known as "Deco Chicago". [12]

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References

  1. ↑ "The Rob Ford saga would be hard to swallow — if we didn't live through it | Toronto Star". The Toronto Star. 2016-03-23. Retrieved 2018-03-23.
  2. 1 2 3 4 "5 things you didn't know about Rob Ford's family: Revelations from the book Crazy Town | Toronto Star". The Toronto Star. 2014-02-03. Retrieved 2018-03-23.
  3. 1 2 3 4 5 6 7 "Doug Ford at Deco: The inside story". The Globe and Mail. 2014-10-10. Retrieved 2018-03-23.
  4. ↑ "Ford family business 'a nightmare' since Doug handed managerial control to Randy, ex-employees say". National Post. 2014-06-05. Retrieved 2018-03-23.
  5. 1 2 "Former councillor Doug Ford improperly used political influence to assist clients at city hall | Toronto Star". The Toronto Star. 2016-12-08. Retrieved 2018-03-23.
  6. ↑ "Once censured for mixing business and politics, Doug Ford now says he'll put family company in trust". National Post. 2018-03-20. Retrieved 2018-03-23.
  7. 1 2 3 "Rob Ford's widow sues Doug Ford over family business days before Ontario election". The Globe and Mail. 2018-06-04. Retrieved 2018-07-02.
  8. 1 2 "Reevely: Doug Ford sued by brother's widow, accused of siphoning inheritance". Ottawa Citizen. 2018-06-05. Retrieved 2018-07-02.
  9. 1 2 3 "A Fordable Luxury" (PDF). Canadian Packaging. April 2017.
  10. ↑ "What would a Premier Doug Ford mean for Ontario's economy?". Toronto Star. 2018-03-19. Retrieved 2018-03-23.
  11. ↑ "Resource Label Group Acquires Chicago based Deco Flexible Packaging". www.businesswire.com. 2022-10-05. Retrieved 2023-02-13.
  12. 1 2 "Ford's public financial disclosure shows he is sole owner of family business - iPolitics". iPolitics. 2018-06-05. Retrieved 2018-07-02.
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