Reitmans files for creditor protection for its 576 stores in Canada
The Montreal-based retailer operates 576 stores across the country with about 6,800 employees total. The clothing giant was founded in 1926, and has been operating in Canada for close to a century.
"Filing for protection under the CCAA is truly the hardest decision we have had to make as an organization in our almost 100 years of history, but this pandemic has left us no choice," Chief Executive Officer Stephen Reitman said.
"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."
The company's financial troubles precede the pandemic, however; Reitmans suffered a net loss of $87.4 million for the year up to February 1, primarily due to a loss in sales.
Fortunately, the company says it has secured enough interim financing to continue normal operations in its stores, which will reopen once public health orders allow.
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