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Toronto Star
2 days ago
- Business
- Toronto Star
Sleep Country Canada co-founder opens up about crack addiction, toxic relationship with stripper
As Sleep Country Canada was becoming one of the country's most successful homegrown brands, one of its co-founders was in the fight for his life against crack cocaine addiction. After 26-years sober, and in the wake of Sleep Country's $1.7 billion acquisition by Fairfax Financial last year, co-founder and former chairman and CEO Gordon Lownds is ready to tell his story. His new memoir, 'Cracking Up' — which hits store shelves on Aug. 17 — shares the story of entrepreneurial success marred by addiction. The brutally honest tale takes readers from Lownds's his first foray into entrepreneurship as a teen at the CNE, to building one of the country's most successful retail brands, to the depths of Vancouver's infamous East Side, to a Toronto addiction treatment facility. 'When I went to treatment I thought I'd be there for a couple of weeks, get fixed up and be back to work,' Lownds says. 'The first day of treatment they said, 'based on your usage, you're going to be here for three months; you're a hard-core addict.''
Hamilton Spectator
2 days ago
- Business
- Hamilton Spectator
Sleep Country Canada co-founder opens up about crack addiction, toxic relationship with stripper
As Sleep Country Canada was becoming one of the country's most successful homegrown brands, one of its co-founders was in the fight for his life against crack cocaine addiction. After 26-years sober, and in the wake of Sleep Country's $1.7 billion acquisition by Fairfax Financial last year , co-founder and former chairman and CEO Gordon Lownds is ready to tell his story. His new memoir, 'Cracking Up' — which hits store shelves on Aug. 17 — shares the story of entrepreneurial success marred by addiction. The brutally honest tale takes readers from Lownds's his first foray into entrepreneurship as a teen at the CNE, to building one of the country's most successful retail brands, to the depths of Vancouver's infamous East Side, to a Toronto addiction treatment facility. 'When I went to treatment I thought I'd be there for a couple of weeks, get fixed up and be back to work,' Lownds says. 'The first day of treatment they said, 'based on your usage, you're going to be here for three months; you're a hard-core addict.'' In 1990 Lownds and a group of financial investors acquired Simmons Mattress Company alongside his business partner and the co-founder of Kenrick Capital, their boutique investment banking firm , Steve Gunn. Recognizing the lack of sleep-specific retail options , Lownds and Gunn co-founded Sleep Country Canada in 1994, recruiting Christine Magee to join them as a co-founder and the brand's public face. By 1998, Sleep Country Canada grew to more than 50 stores coast-to-coast . U nbeknownst to the other founders, Lownds was d eep in the throes of addiction, thanks to a toxic relationship with a Seattle-based stripper . Lownds had never been tempted by mind altering substances previously, suggesting he could count on his fingers the number of times he had been drunk. It wasn't until the addiction had progressed to include needles, after a near fatal overdoses and a brush with the law , that Lownds came clean to Gunn . 'I f the shoe was on the other foot, I probably would have ripped into him,' says Lownds, who retired in 2013 . Instead, Lownds's longtime friend and business partner did everything he could to get him the help he needed. 'H is reaction was a shock to me, and it was a very humbling experienc e,' he adds , fighting back tears. The Star recently spoke with Lownds from his home on Vancouver Island about the relationship between entrepreneurship and addiction, how he was able to manage a booming business with a debilitating drug habit, and why he's finally ready to share his story. I recently volunteered to review a book for a friend, and when the publisher found out who I was, they reached out and said, 'there must be a book in you.' I said, 'I wrote a book a long time ago as a cathartic exercise, but I put it on a shelf and never thought about publishing it.' She basically talked me into doing it. At the time, in 2002 , I was concerned about the collateral damage it might cause to Sleep Country, our partners, and my family. My daughter was 17 and I didn't want all that stuff out in public. About 25 years later, the potential for collateral damage is pretty much zero . Steve retired about five years ago, Christine has been Chairman of the Board for several years, and the company was sold in October. They have a new president, they're well established, and there isn't much I can say to hurt them. I spoke with Christine, Steve and my family to make sure they were OK with it. I also thought it might be helpful for people to understand that addiction can happen to anyone at any time. Absolutely. There is lots of research into entrepreneurs and mental health challenges. I was a workaholic at the time, but I never really thought about it like that. I guess for a workaholic work fills an emotional void, and a substance addiction does the same, so they very well could be linked, but it never occurred to me. E ntrepreneurs can sometimes believe they're invincible ; t hat was my mindset. I was able to cope with any problem in life, so it was inconceivable to me that trying cocaine might cause a problem. When I was 15, I went to the CNE to get a summer job, and I loved the energy and excitement, even though I was working 12-to-16-hour days. The next year one of the game operators got arrested and charged with cheating at the Calgary Stampede , and the company that runs the exhibition, Conklin Shows , asked me to run three games on my own. Benoît Robert's dream of an alternative to car ownership was born in the early '90s. I was in business at age 16, with lots of money at risk . In those three weeks in 1967, I made about $17,000. It was a great experience , and a great business education. I learned a lot about human nature, money, and greed. Then when I was 17 or 18, I hitchhike d across the United States. I left Toronto with $100, and I came back with $100, and in those nine months I never once slept outdoors. I decided that if the worst that could happen to me in life was washing dishes at a diner, which I did for a few weeks, I could live with that. I became fearless, and a lot of my early success in business was because I was willing to take a risk when most people wouldn't . Steve Gunn and I did a leveraged buyout of Simmons Mattress Company, so we understood the industry. Sleep Country came out of our frustration with the inability to increase market share volumes for Simmons because we were entirely dependent on department stores for distribution . T hey didn't do a great job marketing mattresses , so we came up with the idea of doing a specialty retail chain. Steve and I did a lot of research , and we ended up meeting with a company in Seattle called Sleep Country USA. W e gave them a carried interest in Sleep Country Canada so we could leverage their expertise and minimize our risk as startup founders . That company was founded by a husband and wife and one thing that really worked for them was using the wife as the public face, because 80 per cent of mattress decisions are made by women . Steve and I didn't want to be in the public eye anyway . We had been working with Christine Magee for a long time — she was a commercial banker for National Bank, who was a lender for a leveraged buyout we originated in 1989 — so she instantly popped into our minds. I remember sitting down with her for breakfast on Bay Street one morning and asking her, 'how would you like to be the mattress queen of Canada?' and the rest is history . I ended up getting involved with the ultimate femme fatale. Sleep Country USA introduced us to their marketing agency — they were the genius behind our jingle, 'why buy a mattress anywhere else?' — and I was going back and forth to meet them every few weeks in Seattle. That's where I met a stripper that I'd go hook up with when I was in town, and occasionally she'd come up to Vancouver where I was living for a weekend visit. Then one day she arrived with all her luggage, and her cat, and said 'I'm moving in.' I said, 'What? We haven't ' talked about this , ' and she said, 'let's just try it for a weekend.' ZenaTech CEO Shaun Passley says drone technology is 'something more sci-fi' these days being She overwhelmed me with attention, and I was working crazy hours anyway, so I thought maybe it would be OK. Then one day, two or three months later, I came home early, and she was messed up on cocaine and admitted to me that she had been a drug addict since she was 16. I tried to get her into treatment, but she kept giving it up. Finally, I said, 'I can't live with a drug addict, so you've got to go,' and she said , 'if you just try it once with me maybe you can empathize with how I feel, and how difficult it is to stop using.' I've known people who did cocaine and didn't have a problem, so I figured there was no downside. I didn't realize we were smoking crack , and I had an instantly positive reaction to it. F or a while we'd get high on Friday night and party all weekend, and then I'd go into work on Monday. Six months later , I was rarely showing up on Mondays, and realized I had a problem . I was a high functioning addict, but I was terrified that someone would find out. I was living a double life. O ther than the girlfriend and a few drug dealers, nobody knew. Since March of 1999. Entrepreneurs have a tendency to overlook signals that a normal person might pick up on , because we're so consumed with our business , so it's eas ier to fall into a toxic situation in our personal li ves. If you discover you're in a relationship with someone who has a drug problem, you need to understand you cannot help that person; they must be willing to save themselves, and if they're not, you need to get away from it.
Yahoo
18-07-2025
- Business
- Yahoo
Fairfax Issues Reminder Regarding Unofficial Communications
TORONTO, July 17, 2025 (GLOBE NEWSWIRE) -- Fairfax Financial Holdings Limited (TSX: FFH and FFH.U) ('Fairfax') reminds its shareholders and all persons interested in Fairfax that none of Fairfax, Prem Watsa, nor any officer of Fairfax provides financial or investment advice to any person over social media, chat or messaging applications. Prem Watsa does not maintain and has never maintained any online social media accounts. Any social media outlet claiming to represent him or to offer advice on his behalf is fraudulent. Impersonation scams are common, and so one should treat any unsolicited electronic communication that references Fairfax or Prem Watsa with extreme caution. We encourage all persons looking for information about Fairfax and Prem Watsa to consult our press releases, annual reports, interim quarterly reports and annual general meeting materials, all of which are available on our website at Fairfax is a holding company which, through its subsidiaries, is primarily engaged in property and casualty insurance and reinsurance and the associated investment management. For further information contact: John Varnell, Vice President, Corporate Development at (416) 367-4941
Yahoo
15-07-2025
- Business
- Yahoo
Transform Your TFSA Into a Cash Cow With $7,000
Written by Amy Legate-Wolfe at The Motley Fool Canada Investing $7,000 in your Tax-Free Savings Account (TFSA) and turning it into a cash-generating machine doesn't require chasing trends. A focused and balanced mix of dividend and value stocks can work wonders. With that in mind, here's how I'd allocate your money across three solid TSX names. Those will be Fairfax Financial (TSX:FFH), Manulife Financial (TSX:MFC), and WSP Global (TSX:WSP). These strike a balance between income, growth, and diversification. But let's stay grounded — no overpromising here. First, Fairfax Financial. It's a diversified holding company rooted in insurance and asset management. Fairfax currently trades around $2,462 per share as one of the market's deeper-value names, but you're not here for the dividend pump. Its annual payout yields just 0.875%, making it a slow-burn value play rather than a cash machine. In a TFSA, that value growth is just as valuable, even with less immediate income. But you have to be patient, returns here compound slowly and are tied to the performance of its investments and insurance underwriting results. Next, Manulife. Manulife shares last changed hands at $41.50. It reported core earnings of $7.2 billion in 2024, up 8%, and maintains a conservative payout ratio of nearly 42%. Its annual dividend works out to 4.22% at writing, providing a dependable income stream without veering into yield traps. Its Asia business is growing fast, and wealth management is taking off too. But insurers also carry sensitivity to interest rates and capital markets, so you need to watch economic conditions closely. Finally, WSP Global. It's a global engineering and professional services firm trading near $281.50 per share. This isn't an obvious dividend stock; it yields only around 0.54%, or around $1.50 per share annually. Instead, its strength lies in consistent earnings growth and backlog expansion. In the first quarter of 2025, WSP beat expectations, its backlog grew, and analysts remained bullish. Analysts recently raised their estimates. Acquisitions like Ricardo in the U.K. also support global scale. Earnings growth may not generate big monthly cash, but reinvested returns can compound nicely in your TFSA. Here's how I'd divide the $7,000. Put $2,000 into Manulife to collect yield and income right away. The remaining $5,000 gets split between Fairfax and WSP. With Fairfax, you're buying value; you sacrifice immediate income for long-term gains. With WSP, you get global engineering exposure and rely on capital appreciation rather than dividends. COMPANY RECENT PRICE NUMBER OF SHARES DIVIDEND TOTAL PAYOUT FREQUENCY TOTAL INVESTMENT MFC $41.64 48 $1.76 $84.48 Quarterly $1,999.68 FFH $2,462.39 1 $21.59 $21.59 Quarterly $2,462.39 GSY $281.55 7 $1.50 $10.50 Quarterly $1,970.85 This mix gives you immediate yield from Manulife, value growth from Fairfax, and growth engine exposure via WSP. Over time, as Manulife pays dividends, those earnings can either fund living expenses or be reinvested to grow the capital base further. Meanwhile, money in Fairfax and WSP can compound tax-free in your TFSA. But let's be clear: no single strategy is foolproof. Insurers can suffer in market downturns. Fairfax's earnings depend on investment results and underwriting quality. WSP could see delays in infrastructure projects or setbacks in merger and acquisition integration. All come with execution and macro risks. Still, combining yield, value, and growth creates a well-rounded TFSA portfolio. You earn income now, while giving your TFSA room to appreciate over time. And if markets drop, your diversified selection offers different recovery paths. That makes it more resilient than chasing one shiny stock. At the end of five years, your goal is modest but meaningful: generate income from Manulife, build value in Fairfax, and ride global growth with WSP. All inside a tax-free wrapper, of course. That's how $7,000 can transform into a cash-creating machine. It's not glamorous, but it's disciplined, tax-efficient, and tailored to real-world investor needs. The post Transform Your TFSA Into a Cash Cow With $7,000 appeared first on The Motley Fool Canada. Motley Fool Canada's market-beating team has just released a brand-new FREE report revealing 5 "dirt cheap" stocks that you can buy today for under $50 a share. Our team thinks these 5 stocks are critically undervalued, but more importantly, could potentially make Canadian investors who act quickly a fortune. Don't miss out! Simply click the link below to grab your free copy and discover all 5 of these stocks now. Claim your FREE 5-stock report now! More reading 10 Stocks Every Canadian Should Own in 2025 [PREMIUM PICKS] Market Volatility Toolkit A Commonsense Cash Back Credit Card We Love Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Fairfax Financial. The Motley Fool recommends WSP Global. The Motley Fool has a disclosure policy. 2025
Yahoo
04-07-2025
- Business
- Yahoo
Fairfax Financial Holdings (FRFHF) Upgraded to Buy: Here's What You Should Know
Fairfax Financial Holdings (FRFHF) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices. A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years. The power of a changing earnings picture in determining near-term stock price movements makes the Zacks rating system highly useful for individual investors, since it can be difficult to make decisions based on rating upgrades by Wall Street analysts. These are mostly driven by subjective factors that are hard to see and measure in real time. Therefore, the Zacks rating upgrade for Fairfax Financial Holdings basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price. The change in a company's future earnings potential, as reflected in earnings estimate revisions, and the near-term price movement of its stock are proven to be strongly correlated. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock. Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for Fairfax Financial Holdings imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher. Empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions. The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> . This financial services holding company is expected to earn $178.28 per share for the fiscal year ending December 2025, which represents no year-over-year change. Analysts have been steadily raising their estimates for Fairfax Financial Holdings. Over the past three months, the Zacks Consensus Estimate for the company has increased 6.9%. Unlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term. You can learn more about the Zacks Rank here >>> The upgrade of Fairfax Financial Holdings to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Fairfax Financial Holdings Ltd. (FRFHF) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
