Photo: Chris Young-Archives The canadian Press
The co-founder of David’s Tea, David Segal.
Teas from David’s Tea, whose shops have been closed since mid-march due to the pandemic of the COVID-19, has the intention to move to the shelter of his creditors in order to put in place a restructuring that will result in a “significant reduction” in the number of its shops.
In announcing its decision to turn to the Law on arrangements with creditors of companies (CCAA), on Wednesday, the retailer has indicated that it intends to accelerate its shift to online retailing, the wholesale trade and accessories.
In its press release, the company explained that it could “ultimately put an end to a significant number” of its 222 leases in Canada and the United States. It will also seek protection from its creditors in u.s. territory.
In unveiling its results for the fourth quarter, the last month, the merchant tea had not closed the door to the possibility to move to the shelter of his creditors.
Through its Investments Bad Days, Herschel Segal control David’s Tea in addition to being its interim chief executive. The businessman is also the founder of the fashion retailer in The Castle, which has just been announced that its survival is threatened.
The merchant of tea is not the only retailer to have opted for the protection of its creditors since the beginning of the health crisis. Aldo, Reitmans, Sail Plein Air, as well as Frank and Oak did the same in the last few months.