MONTREAL – Reitmans (Canada) Ltd. says it is seeking court protection from its creditors under the Companies’ Creditors Arrangement Act to allow a restructuring of the retailer.
The company says the application will be heard by the Quebec Superior Court Tuesday.
Reitmans has filed for bankruptcy protection under the Companies' Creditors Arrangement Act. It has 576 stores and 6,800 employees. The Montreal-based women's wear retailer says it remains in business (stores closed due to #COVID19).
— Richard Dettman (@rwdettman) May 19, 2020
It says the process will allow the company to implement a restructuring plan that addresses the impacts of COVID-19.
The pandemic forced the closure of the retailers stores in a bid to slow the spread of the coronavirus but its e-commerce websites have remained open.
In conjunction with its court filing, the company says it has undertaken a process to secure interim financing to allow its stores to continue normal operations following the opening of its retail locations and throughout the CCAA process.
Reitmans says it employs approximately 6,800 people and operates 576 stores including 259 Reitmans, 106 Penningtons, 80 RW & CO., 77 Addition Elle and 54 Thyme Maternity.
Companies in this story: (TSX:RET)