Ladies’s vogue retailer Reitmans will search safety from its collectors in a Canadian courtroom Tuesday, the most recent retail chain to attempt to restructure after COVID-19 walloped its enterprise.
The Montreal-based firm mentioned Tuesday that it’s looking for safety beneath the Firms’ Collectors Association Act, a federal regulation governing firms that may’t pay their payments.
“Submitting for cover beneath the CCAA is actually the toughest determination we’ve needed to make as a company in our virtually 100 years of historical past, however this pandemic has left us no selection,” chief govt officer Stephen Reitman mentioned. “We consider that that is the one plan of action to make sure we stay profitable sooner or later.”
The TSX-listed firm has 576 shops throughout Canada, together with 259 Reitmans shops, 106 Penningtons, 80 RW & CO. shops, 77 Addition Elle shops and 54 Thyme Maternity places.
Reitmans employs 6,800 folks in Canada. Like many different companies, nearly all of Reitmans bodily shops are at present closed due to COVID-19 social distancing necessities, though the corporate has been promoting on-line.
The corporate says it has secured interim financing to ensure issues run easily as soon as shops reopen, and is in discussions with its numerous lenders about discovering discovering what it calls “everlasting financing upon exit from the restructuring course of.”
Whatever the end result of that course of, it is clear the corporate’s plan is to have fewer bodily shops.
“Because the restructuring will get underway, the corporate will look to optimize its retail footprint in Canada to emerge from this course of in a stronger state,” the chain mentioned.