A Canadian women’s fashion chain has filed for bankruptcy protection as the company works on a restructuring plan to address the impacts of COVID-19.
Reitmans filed for the protection under the Companies’ Creditors Arrangement Act (CCAA) in order to facilitate its operational, commercial and financial restructuring.
In a press release, the company says the restructuring plan will help build a more resilient organization that will be positioned for long-term success.
“Filing for protection under the CCAA is truly the hardest decision we have had to make as an organization in our almost one hundred years of history,” said Stephen Reitman, president and chief executive officer, in the release.
“This pandemic has left us no choice – we believe that this is the only course of action to ensure we remain successful in the future.”
During the process, the company plans to remain in full operation through its brands’ e-commerce websites. All physical stores will reopen, the company says, in respect to provincial and regional governmental guidelines.
The company has three locations in Cape Breton – two in Sydney and one in Port Hawkesbury. All three locations are expected to reopen in the near future.
The Montreal-based company was founded by Herman and Sarah Reitman in 1926. Since then, the publicly-owned, family-controlled business has evolved to one of Canada’s largest women’s specialty retailer.
Reitmans has close to 6,800 employees and operates 576 stores including 259 Reitmans, 106 Penningtons, 80 RW & CO., 77 Addition Elle and 54 Thyme Maternity.
The Cape Breton Post contacted Reitmans for more information about the Cape Breton locations. The company did not respond to emails as of Wednesday afternoon.
Reitmans is expected to reopen at the Mayflower Mall in Sydney on Monday. Reopening dates for the other two locations were not confirmed.
