Reitmans seeks court protection from creditors under CCAA, plans restructuring - BNN Bloomberg

www.bnnbloomberg.ca
3 min read
difficult
Canadian retailer Reitmans Ltd. filed for creditor protection Tuesday under the Companies' Creditors Arrangement Act (CCAA) to facilitate restructuring in wake of the COVID-19 pandemic.
MONTREAL -- Reitmans (Canada) Ltd. is seeking court protection from its creditors under the Companies' Creditors Arrangement Act to allow a restructuring of the women's clothing retailer.

The application will be heard by the Quebec Superior Court on Tuesday, the company said.

The process will allow the company to implement a restructuring plan that addresses the impacts of COVID-19, which prompted retail outlets across Canada to shut their doors temporarily in an effort to help contain the pandemic from spreading.

Reitmans closed 587 stores on March 17, but its e-commerce websites have remained open. At the time, the company also announced it would temporarily lay off 90 per cent of its Canadian retail staff, starting March 29, across its five banners: Reitmans, Penningtons, Addition Elle, RW & Co. and Thyme Maternity. Thirty per cent of its Montreal head-office staff were also laid off starting March 30.

Remaining employees, meanwhile, were asked to contribute to on-going cost-saving initiatives.

"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, but this pandemic has left us no choice," chief executive Stephen Reitmans said in a statement Tuesday.

Reitman assumed the CEO role in early 2020 following the death of his brother Jeremy Reitman, who…
The Canadian Press
Read full article