The Montreal-based company, which owns store banners including Reitmans, RW&Co., Penningtons and Addition Elle, said it may be unable to continue if it 'is unable to obtain such financing in the limited time period required.'The uncertainty caused by COVID-19 has pushed retailer Reitmans Canada Ltd. to the brink, with the company warning on Friday that unless it is able to secure financing to meet its financial obligations, the business could fail.
Reitmans is “actively seeking additional financing” and may be unable to continue if it “is unable to obtain such financing in the limited time period required,” the statement said.The Montreal-based company owns store banners including Reitmans, RW&Co., Penningtons and Addition Elle. Like many apparel retailers during the COVID-19 pandemic, Reitmans is considered a non-essential business. It was required to close all of its 582 stores across Canada in mid-March.
Reitmans had been attempting to refresh those brands over the past year and had stepped up promotions, but did not win back customers. The company had already suspended its quarterly dividend to shareholders, and at a meeting on Friday the Reitmans board of directors decided to continue to do so in order to conserve cash, the statement said.
“Based on the company’s liquidity position as of the date of this press announcement, including the termination and reduction in availabilities under the company’s credit facilities … and in light of the uncertainty surrounding the outbreak, [Reitmans] estimates that it will need financing to meet its current and future financial obligations,” Friday’s statement said.
globebusiness That would be a shame since the be in business since 1947.
globebusiness
globebusiness Oh well 👋
globebusiness Reitmans that would be very sad, classic Canadian store. Loyal customer for over 25 years
globebusiness Sorry – but how much clothing do we really need? Thrown-away clothes are one of the biggest pollution problems we have.