Thyme Maternity, Addition Elle to close
Reitmans to shutter stores, lay off 1,400 staff as it restructures
Reitmans (Canada) Ltd. will close two of its retail chains and lay off roughly 1,400 workers as the company continues a restructuring amid the pandemic. Montreal-based Reitmans said Monday that it will shutter its 77 Addition Elle stores on Aug. 15 and 54 Thyme Maternity locations on July 18.
“The strategic decision to close two beloved Canadian fashion brands was not made lightly, but it is necessary to enable our business to move forward as a profitable organization,” Stephen Reitman, the company’s president and chief executive, said in a statement.
“All of the efforts we put forth to turn these brands around were derailed by the COVID-19 pandemic and, unfortunately, we can no longer afford the required resources to bring them back to profitability.”
The company will liquidate the brands’ merchandise and wind down their websites when the stores will close.
As part of the closings, about 1,100 retail and 300 Montreal head office workers will lose their jobs. Reitman, who assumed the CEO role in early 2020 following the death of his brother Jeremy Reitman, said he was “heartbroken to have to say goodbye” and grateful for the departing workers’ contributions.
The closings follow a move last month by Reitmans to seek court protection from creditors under the Companies’ Creditors Arrangement Act and restructure the company.
As part of that plan, the retailer will focus on its three remaining brands — Reitmans, Penningtons and RW & CO.
The company employs about 6,800 people and operates 259 Reitmans, 106 Penningtons and 80 RW & CO. locations.
Bruce Winder, a retail analyst, said he thinks the move will keep Reitmans alive for about a year, but said the outlook doesn’t seem promising.
“What this will help them do is generate a little bit of cash this summer because when you liquidate stores, you get cash and that is one of the upsides of dumping brands,” he said.
The pandemic has hastened some of Reitmans struggles, Winter said.