Reitmans, a leading ladies apparel retailer with retail outlets throughout Canada, announced Tuesday it is seeking protection under the Companies’ Creditors Arrangement Act “in order to facilitate its operational, commercial and financial restructuring.”
The retailer employs about 6,800 people and operates 576 stores consisting of 259 Reitmans, 106 Penningtons, 80 RW & CO., 77 Addition Elle and 54 Thyme Maternity.
In a news release, the company said the CCAA process will allow the company to implement a restructuring plan that addresses the impacts of COVID-19 in order to build a more resilient organization that will be positioned for long-term success.
“Throughout this process, the Company will remain fully operational through its brands’ e-commerce websites; all physical stores will re-open in conformity with provincial and regional governmental guidelines. As the restructuring gets underway, the Company will look to optimize its retail footprint in Canada to emerge from this process in a stronger state. The retail landscape has been in constant flux over the past several years, resulting in the evolution of consumer behavior and purchasing patterns,” it said.
“Reitmans has implemented a successful digital-first strategy, amongst other omnichannel initiatives, to drive sustainable growth in this evolving retail environment. However, the COVID-19 pandemic forced the closure of all retail stores, and pushed the retail industry into a new and unknown era.”
Stephen Reitman, President and Chief Executive Officer of Reitmans, and grandson of the company’s founders, said: filing for protection under the CCAA is the hardest decision it has had to make as an organization in its almost 100 years of history.
“But this pandemic has left us no choice – we believe that this is the only course of action to ensure we remain successful in the future,” he said.
“We have many strengths: we’re the Canadian leader in specialty retail, we have a strong leadership team and talented employees, great national brands, an omnichannel retail strategy with robust online sales, and most importantly, loyal customers who have been shopping on our websites at a record pace since the start of the pandemic. We will dedicate ourselves to the restructuring of our business, and then we’ll carry on with what we do best: offering affordable fashion and great service to our customers and communities for many years to come.”
