Jamaican air conditioning specialist CAC 2000 Limited has strategically withdrawn from its consumer retail operations, closing both Montego Bay and Kingston locations as part of a comprehensive cost-reduction initiative. The 25-year-old company, facing significant working capital constraints, is returning to its core expertise in large-scale commercial and government projects.
The Montego Bay outlet ceased operations October 1, followed by the Village Plaza location in Kingston on December 1. Company leadership emphasized these closures represent a necessary operational streamlining rather than a strategic pivot, with expectations of minimal financial impact.
This retrenchment follows concerning financial performance. For the quarter ending July 31, 2025, CAC 2000 reported a $29.7 million net loss, accumulating to $73.9 million year-to-date despite improved operating cash flow of $51.9 million. Quarterly revenue declined dramatically to $222.1 million from $307.3 million year-over-year, reflecting reduced activity outside major projects.
CEO Gia Abraham revealed to the Jamaica Observer that delayed collections from a specific client segment have created severe liquidity pressure. “We are having cash-flow issues mainly because a particular customer segment comprises substantial receivables, creating negative business impact,” Abraham stated. “We must take necessary measures to preserve operations.”
The company’s trade receivables ballooned to $869.6 million as of July 31, up from $628.9 million a year earlier, indicating severe collection challenges.
Despite retail closures, CAC 2000 maintains its commercial headquarters at 231 Marcus Garvey Drive in Kingston and continues service operations in Montego Bay. The company’s brief retail experiment, launched in 2023 with the Village Plaza opening followed by Montego Bay, was intentionally designed with minimal investment due to management’s awareness that retail fell outside their core competencies.
Abraham indicated future consumer engagement would likely occur through digital channels or existing commercial partnerships rather than physical stores. Current priorities include stabilizing cash inflows and ensuring execution of major projects, particularly an extensive energy-efficiency contract with the Ministry of Science, Energy, Telecommunications and Transport involving solar installation and AC retrofitting across 22 government institutions, including 16 hospitals.
“We maintain a healthy project portfolio but face challenges,” Abraham acknowledged. “This represents returning to fundamentals—taking strategic steps backward to enable future advancement.”