Addition Elle and Thyme Maternity are permanently closing all stores in Canada
The Montreal-based retailer's announcement comes just two weeks after it filed for creditor's protection amidst a slump in sales and financial struggles.
"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 F. Reitman, President and CEO, said on Monday.
"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 says that all physical stores will continue to open across Canada in the coming weeks based on governmental guidelines, including Addition Elle and Thyme Maternity stores.
The two brands will then liquidate the inventory before closing all 54 Thyme Maternity stores on July 18, and all 77 Addition Elle locations on August 15. Their websites will shut down on the same dates.
The company will also lay off about 1,100 employees across its retail locations and 300 employees at its Head Office in Montreal.
Reitman called the layoffs "the most difficult and emotional part" of the process.
"We are heartbroken to have to say goodbye to esteemed colleagues and we are truly grateful for their hard work and many contributions to our Company over the years," he said.
Despite the closures, Reitman remains hopeful about the future of the iconic Canadian brand, adding that the company intends to "write the next chapter of our Company's history for a stronger and brighter future."
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