News
Ricki’s and Cleo’s clothing stores closing
In court docket filings, the corporate says it could search a future court docket order to liquidate a number of the Bootlegger shops
CANADA – The brand new 12 months is off to a tough begin for Canada’s retail business, with two corporations searching for creditor safety and shutting shops whereas they take into account tips on how to transfer ahead
Comark Holdings Inc., which owns attire manufacturers Ricki’s, Cleo and Bootlegger, and with UCG Canada Holdings Inc., which operates as clothes model Frank and Oak, each made court docket functions in current weeks designed to provide them reprieve from collectors and the area to contemplate the way forward for their companies.
Comark’s submitting below the Corporations’ Collectors Association Act was paired with a choice to shutter all of its Ricki’s and Cleo areas, which promote girls’s attire that’s typically fitted to workplace environments.
Court docket paperwork present the corporate operates 75 Ricki’s shops, 54 Cleo shops, 20 joint areas and about 19 websites the manufacturers cut up with Comark’s different banner Bootlegger, which has 53 standalone retailers.
The corporate, which court docket filings say has 2,056 staff in Canada, mentioned it could search a future court docket order to liquidate a number of the Bootlegger shops. Its attorneys didn’t reply to a request for remark.
In court docket filings, Comark describe the way it bumped into bother because it tried to deal with the COVID-19 pandemic, a November 2021 ransomware assault, extra competitors from extremely low-cost trend retailers like Shein and Temu and provide chain and vendor points.
“However their greatest efforts to scale back bills, protect capital and enhance profitability, the candidates’ liquidity place continues to quickly deteriorate, significantly throughout the historically slower post-Christmas retail season,” chief govt Shamsh Kassam mentioned in an affidavit.
He estimated that by the point Christmas arrived, Comark’s manufacturers owed $61 million to a mixture of distributors, landlords and different companions who the corporate can be unable to pay.
“Sure distributors have stopped transport new merchandise and have said that they don’t seem to be keen to begin manufacturing for summer season and fall product merchandise,” Kassam mentioned.
“Sure different distributors have issued statements of declare in current weeks in opposition to the candidates in Ontario and Manitoba searching for fee of excellent quantities and damages.”
The state of affairs Comark finds itself in was no shock to Liza Amlani, co-founder of the Retail Technique Group.
“If you go to their shops, it looks like now we have taken a step again in time,” she mentioned in an electronic mail.
“An abundance of extra stock sits on rails within the shops on the finish of every season. They’re inundated with stock and deep markdowns which tells me they don’t know what their buyer desires.”
Her notion of Frank and Oak was comparable after visiting two of the manufacturers shops lately.
“The assortment was boring and boring,” she mentioned. “The gross sales associates didn’t have gross sales coaching and lacked customer support abilities. That means, I used to be greeted and informed in regards to the sale however that was it.”
Frank and Oak, which has 15 shops in Canada, has been searching for creditor safety whereas it explores choices to restructure its enterprise.
“The first aim is to protect the enterprise, safeguard jobs, and discover potential options, together with attracting an investor or figuring out a purchaser for the model,” the Montreal-based firm mentioned in a press launch.
Court docket filings present the retailer owes about $71 million to collectors, which embrace textiles companies, landlords and utility corporations.
Frank and Oak’s chief govt Dustin Jones positioned the debt because of the corporate failing to recoup losses skilled throughout the aftermath of the COVID-19 pandemic.
“Make certain that we are going to work diligently on our restructuring plan to make sure our success with the aim of constant our enterprise relationship with you,” a be aware he despatched to collectors mentioned.
Frank and Oak and Comark’s filings come days after Toys “R” Us Canada mentioned it was shuttering 5 Ontario shops and making room at others for play areas and an growth of the HMV model.
The Physique Store Canada has additionally mentioned it’s going to shut areas because it charts a sale to an affiliate of Markham, Ont.-based Serruya Personal Fairness Inc.
But Amlani does not see the confluence of closures and court docket filings as an indication that the retail business is in for a troublesome 12 months.
“(Shoppers) are simply being extra cautious and intentional on what they’re shopping for,” she mentioned.
“With extra choices than ever, the shopper has so many extra selections on-line and offline than ever earlier than.”
This report by The Canadian Press was first printed Jan. 8, 2025.
Tara Deschamps, The Canadian Press
-
News4 weeks ago
Man City vs Man United player ratings: Marks out of 10, analysis of Manchester derby
-
News3 weeks ago
Michael Vick says he will be the new head football coach at Norfolk State : NPR
-
News4 weeks ago
49ers Drop Week 15 Matchup to the Rams; Five Takeaways from #LARvsSF
-
News4 weeks ago
‘Red One’ Is Now Streaming—How To Watch The Rock’s Christmas Movie At Home
-
News4 weeks ago
Game Awards Winners 2024 List
-
News3 weeks ago
Several hundred feared dead after Cyclone Chido
-
News3 weeks ago
Mufasa: The Lion King – six key things to know before watching the prequel | Ents & Arts News
-
News4 weeks ago
CIRB to hear union complaint over Canada Post layoffs