Laura trims number of expected closures

MONTREAL— Laura Shoppes Inc. is planning to close five fewer stores than originally planned as landlords at several malls have agreed to cut rents and suppliers have offered significant discounts on clothes for the fall season.

The Montreal-based company, otherwise known as Laura Canada, will close 15 stores on Sept. 13, according to a court filing in Quebec Superior Court. None of the locations were disclosed. Seven more store leases are set to expire at year-end.

Laura Canada, which like many Canadian fashion retailers has struggled amid an influx of large international competitors, filed for creditor protection last month.

Besides the Laura, Laura Petites and Laura Plus brands, the company operates under the Melanie Lyne banner.

The company originally planned to close 20 stores and seek rent reductions on 26 others. It ultimately secured rent reductions for more than 36 locations that will save it $5.2 million a year. It said the stores being closed contributed less than 5 per cent of overall revenues and all either generated losses or were marginally profitable.

Meanwhile, Laura Canada said it expects to earn some $5 million in extra gross profit from discounts provided by suppliers on about $34.5 million of fall merchandise that went on sale a couple of weeks ago.

An additional $1.2 million in annualized savings are expected from the decision to close or reduce the size of office space at two buildings in Laval, Que., and vacate unused offices in Mississauga, Ont.