Ricki’s, Cleo, and Bootlegger Store Closures
Canadian Fashion Retailers Closing Doors: What Does This Mean for Shoppers?
Several well-known Canadian fashion retailers, including Ricki’s, Cleo, and Bootlegger, are shutting down operations as their parent company, Comark Holdings, seeks creditor protection. This comes after the Vancouver-based company announced plans to close many of its stores across the country. With 221 locations in eight provinces, the closure will have a significant impact on both shoppers and employees.
Why are Ricki’s and Cleo Closing?
Comark Holdings has made the difficult decision to wind down Ricki’s and Cleo operations. Despite exploring various options, the company concluded that closing the stores was in the best interest of stakeholders. The brands will be liquidated, with all store locations under these banners being shut down.
The company’s statement highlights that they are actively pursuing a court order to approve the full liquidation of Ricki’s and Cleo, while some Bootlegger stores may also be affected. The liquidation process will continue, and the stores will remain open until further notice.
Is Bootlegger Also in Trouble?
While Ricki’s and Cleo are winding down, Comark is still looking for ways to restructure Bootlegger. The company is hoping to reduce its retail footprint to align better with today’s retail reality. This move is part of the Companies’ Creditors Arrangement Act (CCAA) process, which will help Comark evaluate future opportunities for the brand.
How Has the COVID-19 Pandemic Affected These Brands?
Comark, like many other retail brands, struggled during the COVID-19 pandemic. Before filing for creditor protection in June 2020, the company operated over 300 stores across Canada. The pandemic’s aftermath led to significant losses, prompting the company to restructure its operations.
What’s Next for Canadian Shoppers?
As Ricki’s, Cleo, and Bootlegger close their doors, consumers may be wondering what the future holds for Canadian fashion retail. The closures highlight the challenges faced by brands trying to adapt to a rapidly changing retail environment. While some brands are exploring restructuring options, others are being forced to close altogether.
What If You’re Impacted by Ricki’s, Cleo, or Bootlegger Store Closures?
Bankruptcy does not relieve employers of their responsibility to pay wages owed to employees. However, in such situations, employees may find themselves in a difficult position. When an employer goes bankrupt, employees become unsecured creditors, meaning they are at the back of the line behind other creditors, including government taxes and banks with secured debts, who will be paid first.
If you or someone you know is facing issues with a bankrupt employer, it’s crucial to consult with an experienced employment lawyer to understand your rights. The team at Whitten & Lublin can guide you through your options based on your specific situation. For more information or assistance, reach out to us online or by phone at (416) 640-2667.