Reitmans has seen its initial order be extended until 29 July.
May 29, 2020 19h42
Reitmans: protection against its creditors is extended from 60 days
The canadian Press
MONTREAL — The retailer Reitmans, which was placed ten days ago under the protection of the Act creditors arrangement companies, has seen its initial order be extended Friday to 60 days, until July 29, by the superior Court of Quebec.
The clothing store chain said that it had made progress in the procedure under the act with the assistance of the controller, Ernst & Young, and added that further announcements would be made “as and” that the efforts will continue.
Reitmans does not lag of long-term debt, but its debt amounted to approximately $ 148 million as at the announcement of the appeal to the CCAA. This amount consisted mainly of amounts owed to its suppliers, but also coupons and gifts, of amounts related to its reward program and obligations to its retirees.
The retailer may also need large sums to its owners estate, because the rents of the months of April and may have not been paid, had indicated to Ernst & Young in its initial report.
Before laying off nearly all its staff at the end of march due to the pandemic of COVID-19, the company had approximately 6800 employees and operated 576 stores in all provinces and territories under the banners Reitmans, Penningtons, RW&CO, Addition Elle and Thyme Maternity.
Reitmans, which continues its activities through the web sites of its brands, indicated that it intended to reopen all its physical stores in accordance with the guidelines of the governments. Approximately 380 shops have reopened their doors until now, she said Friday.