Comark joins growing list in filing for creditor protection
Comark Inc. — owner of Ricki’s, Bootlegger and Cleo — has joined the swelling ranks of homegrown Canadian fashion chains that have filed for bankruptcy protection and are closing some stores.
The Mississauga, Ont., chain, which was founded in 1976 and has more than 300 stores across the country, was granted an initial order of creditor protection Thursday in an Ontario court under the Companies’ Creditors Arrangement Act.
The company, which has 153 Ricki’s, 101 Bootlegger and 87 Cleo locations, intends to continue to operate stores during the process and will close roughly 50 stores.
As the company goes through restructuring, “all of our popular rewards programs, gift cards, warranties and exchanges will be honoured,” chief executive Gerry Bachynski said in a release.
The store closings will occur over the next 30 days, and the company is also reviewing staff levels at its headquarters and regional offices and distribution centre in Richmond, B. C., Winnipeg and Laval.
Alvarez & Marsal Canada Inc. was made the court- appointed monitor of the company.
It comes the same week that Montreal- based Boutique La Vie en Rose bought struggling swimwear chain Groupe Bikini Village out of insolvency, cutting about 50 jobs but keeping 48 stores open.
But many attempts to salvage lagging chains have failed. In addition to the high- profile bankruptcy of Target in Canada, Montreal- based Reitmans is closing 107 Smart Set stores across Canada amid poor performance. Last month, the Canadian division of insolvent Dutch clothing chain Mexx shut its 95 stores, and Montreal- based Jacob gave up on its efforts to restructure the chain last October and closed its 92 stores. Industry watchers are keeping an eye on leather apparel and accessories chain Danier and fashion retailer Le Château, which have struggled in recent years.