Nevertheless, the financial burden placed on some retailers because of rents and other costs have led to bankruptcy protection filings and one of the reasons is for retailers to shut less productive store locations.
When stores shut temporarily, the majority of Comark’s 2,500 employees were laid off — most employees are described as being “of short-tenure, non-union retail employees”. Comark said in court documents that its “placing orders for additional inventory is contingent on securing sufficient landlord support to proceed with a going-concern restructuring”. Canada was the first international market for the Bestseller store concept and it was expected to be expanded across the country after launching in 2015. He is also President & CEO of Vancouver-based Retail Insider Media Ltd. Email Craig: craig@retail-insider.com. Many Canadians have lost jobs while others have lost wealth due to stock market declines and low oil prices. As of May 2, Comark’s book value was $66.9 million and liabilities stood at $82.3 million.
Reopening stores is proving challenging for Comark. DETAILS; FREE SHIPPING NO CODE • $50 MIN DETAILS; COVID-19 UPDATE SEE MORE .
The restructuring proceedings will provide Comark the opportunity to optimize its store footprint and leasing costs with the aim of emerging as a stronger business, better able to serve and support its loyal customers,” the statement said. Negotiations will be ongoing and “a workable solution with landlords must be reached by June 19, 2020 to determine the future viability of business and implement a restructuring by the end of June”. Court filings stated that “there are many challenges associated with reopening safely,” going on to say that “It takes one to two weeks to determine whether store employees can return, additional time to find replacement employees if needed, and at least two days to sanitize reopening stores, plus any time required to purchase personal protective equipment for employees”.
In 1982, Comark added Winnipeg-based Ricki’s stores to the group. Bestseller Canada is a division of the Denmark-based Bestseller group which operates globally. The French luxury brand’s massive storefront is unlike any other location in Canada. While the majority of the 310 units will remain open according to filings, Comark is still expected to close at least 100 store locations in Canada in the coming weeks and months.
A liquidity crisis has resulted as Comark is unable to make further draws under the CIBC Credit Facility. The effectiveness of these agreements will be conditional on a critical mass of landlords signing such agreements on or before June 19, 2020.”. As of June 10, 210 of Comark’s 310 stores will have reopened — the 92 Ontario locations will remain closed as well as eight units in Newfoundland. The company behind Ricki's, Bootlegger and Cleo plans to close stores and cut jobs as part of a restructuring after obtaining court protection from creditors Thursday. Comark said in court documents that it needs “a significant show of support” from its landlords to restructure the business. Prior to the March 2020 store shutdowns due to COVID-19, Comark was in the process of streamlining its business operations according to court filings. Family-owned Bestseller was founded in 1975 in Brande, Denmark with an aim to provide "fast affordable fashion for women, men, teenagers, and children", according to its website. Borrowing more money is not an option according to documents, and Comark said that it had not paid rent for its retail stores for the months of April, May, and June — the amount now owed is about $9 million according to court documents.
Both brands can also be found in multi-brand retailers such as Hudson’s Bay. Gerry Bachynski, President of Comark, said, “Top of mind for our loyal customers and employees is that the majority of our Ricki's, Cleo, and Bootlegger stores across Canada continue to be open for business, with physical stores scheduled to re-open in conformity with local guidelines. Cleo and Ricki’s are female-focused fashion brands also with stores across the country. Canada's Most Read Online Retail Industry Publication. In fiscal 2020, Comark saw a decline in store level cash flow of 28% or $15.6 million, resulting in a net loss of about $7.6 million. Find a Store; Find a Wishlist; Gift Cards; My Account / Login; Fit Guide; Fit Guide; Shop + Tell; Let Us Help. The real estate arm will transform some stores into mixed-use properties featuring offices, housing, entertainment, and retail space. All Vero Moda locations are expected to close according to another source familiar with the situation. In a statement on Wednesday, Comark said that its goal is to remain operational while shedding some less productive storefronts. One source said that 13 of the 51 Jack & Jones store locations in Canada would be “handed back to landlords” with more information forthcoming. In the fiscal year ending February 29 2020, the company saw same store sales decline 6.5% — in the year prior, sales had remained about the same as they were in 2018. The majority of stores will remain open, according to Comark, with safety measures in place as stores reopen. Now located in Toronto, Craig is a retail analyst and consultant at the Retail Council of Canada. Other Bestseller brands carried in multi-brand retailers include Only&Sons, Selected Homme, Noisy May, and others. Local investors claim that the company is acting fraudulently after an alleged settlement with the Canadian division. As of Tuesday, Comark had received notices of default for 56 of its store locations. On Tuesday and Wednesday of this week, two major retail groups in Canada filed for bankruptcy protection as businesses struggle after prolonged shutdowns due to the COVID-19 pandemic. Some landlords have given breaks including rent reductions and deferrals, while government programs have been put in place with the intention to help retailers with rent obligations. Comark filed for bankruptcy protection in 2015 as well. While stores were mandated to be shut because of the COVID-19 pandemic, landlords have demanded that rents be paid.
About 40% of Comark’s stores are in Ontario. The company will open two permanent stores in Canada this fall, as well as a hard-shop and experiential pop-ups in major markets. The massive historic building was the flagship for the Hudson’s Bay Company until 1974. Cleo and Ricki’s are female-focused fashion brands also with stores across the country. He has studied the Canadian retail landscape for the past 25 years and he holds Bachelor of Commerce and Bachelor of Laws Degrees. Its parent company Parentco is “not prepared to advance further funding” either. Inventory is an issue as well — it’s almost time to place orders for the fall fashion season. Both retail conglomerates operate stores primarily in suburban shopping centres. Jack & Jones is a youthful fashion line featuring men’s apparel and accessories. Most of the 60 store locations operate under the Jack & Jones label.
The retailer's new store concept is a refresh for the retailer which had successfully negotiated store leases following its filing last month. Insiders are saying that more retailers in Canada are expected to file for bankruptcy protection in the coming weeks and months.
The content on this website is protected by the copyrights of Retail Insider Media Ltd. or the copyrights of third parties and used by agreement. “For the week of May 24th, comparable store sales for open stores are 52% lower than the previous year’s sales,” according to filings.
Canada's Most-Read Online Retail Industry Publication. No part of any of the content of this website may be reproduced, distributed, modified, framed, cached, adapted or linked to, or made available in any form by any photographic, electronic, digital, mechanical, photostat, microfilm, xerography or other means, or incorporated into or used in any information storage and retrieval system, electronic or mechanical, without the prior written permission of Retail Insider Media Ltd. or the applicable third party copyright owner. According to its website, Comark operates 310 store locations in Canada under the three banners. Comark, which was founded in 1976, grew by 58 stores in 1979 when it acquired the Mississauga-based Irene Hill brand and renamed it Cleo in 1994.
Canada is home to several Vero Moda store locations as well — the brand is known for its value-priced women’s apparel.
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