Reitmans closing two chains
The Canadian Press - Jun 01, 2020 - Business Buzz

Photo: The Canadian Press

Reitmans (Canada) Ltd. will close two of its retail chains and lay off roughly 1,400 workers as the company continues a restructuring amid the pandemic.

Montreal-based Reitmans said Monday that it will shutter its 77 Addition Elle stores on Aug. 15 and 54 Thyme Maternity locations on July 18. There are several B.C. locations of both stores, mostly in the Lower Mainland.

“The strategic decision to close two beloved Canadian fashion brands was not made lightly, but it is necessary to enable our business to move forward as a profitable organization,” Stephen Reitman, the company’s president and chief executive, said in a statement.

“All of the efforts we put forth to turn these brands around were derailed by the COVID-19 pandemic and, unfortunately, we can no longer afford the required resources to bring them back to profitability.”

The company will liquidate the brands’ merchandise and wind down their websites when the stores will close.

As part of the closures, about 1,100 retail and 300 Montreal head office workers will lose their jobs.

Reitman, who assumed the CEO role in early 2020 following the death of his brother, Jeremy Reitman, said he was “heartbroken to have to say goodbye” and grateful for the departing workers’ contributions.

The closures follow a move last month by Reitmans to seek court protection from creditors under the Companies’ Creditors Arrangement Act and restructure the company.

As part of that plan, the retailer will focus on its three remaining brands: Reitmans, Penningtons and RW & CO.

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