The retailer Reitmans will be eliminating 1400 jobs and will close two chains

Le détaillant Reitmans éliminera 1400 postes et fermera deux enseignes

Le détaillant Reitmans éliminera 1400 postes et fermera deux enseignes

While Reitmans continues to re-open progressively its stores, the company expects to liquidate its inventory at Addition Elle and Thyme Maternity in anticipation of the closures.

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June 1st, 2020

Updated June 2, 2020 0h23

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The retailer Reitmans will be eliminating 1400 jobs and will close two chains

Julien Arsenault

The canadian Press

The chain of clothing Reitmans, which was placed to protect itself from its creditors on may 19, will close its stores, Addition Elle and Thyme Maternity during the summer, which will result in the elimination of 1,400 positions, including 300 at its head office in montreal.

In the framework of its restructuring, the retailer, founded in 1926 reported, Monday, by means of a press release that it intends to focus on three brands as Reitmans, Penningtons RW&CO.

At the present time, the company has 54 stores Thyme Maternity and 77 stores Addition Elle in its network. These signs, as well as their web sites, will close respectively on 18 July and 15 August.

“All the efforts we have made to redress these brands have been compromised by the pandemic COVID-19 and, unfortunately, we no longer have the margin of manoeuvre necessary to bring them back on the path to profitability,” said chairman and chief executive officer of the retailer, and grandson of the founders, Stephen Reitman.

While Reitmans continues to re-open progressively its stores, the company expects to liquidate its inventory at Addition Elle and Thyme Maternity in anticipation of the closures.

Before laying off nearly all its staff at the end of march, the company had approximately 6800 employees and operated 576 stores in all provinces and territories.

Mr. Reitman stated that the closures and the layoffs were “by far, the most difficult and emotional” decision for the current process.

Before turning to the Law on arrangements with creditors of companies (“CCAA”) on 19 may, the retailer had reported to be in search of long-term funding to “meet its financial obligations and future”. Reitmans has not provided update on this aspect of the restructuring, on Monday.

For the 12-month period ended on the 1st of February, Reitmans saw its revenues decline by 5.8 %, to 869,5 million $. Approximately 20 % of this sum had been collected through online sales.

The net loss for the retailer was encrypted to $ 87.4 million, or $ 1.56 per share. The previous year, the retailer had posted a net profit of $ 6.8 million, or 11 ¢ per share.

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