Damaged by the influence of the COVID-19 pandemic, Montreal-based clothing retailer Reitmans revealed Tuesday that it is looking for security from its creditors in hopes of restructuring.
The Reitmans filing will be listened to in Quebec Superior Court Tuesday, the firm claimed, noting that the choice to do so was made with one voice by its board of directors.
“Declare protection under the CCAA (Companies’ Lenders Arrangement Act) is absolutely the hardest choice we have actually had to make as a company in our practically one a century of background, yet this pandemic has actually left us no option– our team believe that this is the only training course of action to guarantee we remain effective in the future,” Stephen Reitman, head of state and Chief Executive Officer of Reitmans, said in a declaration Tuesday.
“We will certainly commit ourselves to the restructuring of our company,” Reitman included, noting that regardless of extensive store closings as a result of public wellness orders throughout the nation “loyal customers … have actually been shopping on our internet sites at a document rate because the begin of the pandemic.”
Reitmans will certainly reopen its 576 shops – under the Reitmans, Penningtons, RW & & Co., Thyme Maternal and Enhancement Elle banners – as allowed by numerous public health orders throughout the nation, the business stated.
Reitmans uses some 6,800 individuals across Canada.
Last week, an additional Montreal-based style seller, Aldo, announced it would be looking for defense from its creditors.