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Reitmans files for bankruptcy protection

Last Updated May 19, 2020 at 7:32 am PDT

Halifax, Nova Scotia, Canada - July 7, 2011: Reitmans store signage in Bayers Lake Industrial Park. Reitmans specializes in women's apparel and was founded in 1926 by Herman and Sarah Reitman, in Montreal, Quebec, Canada. (iStock)
Summary

Reitmans has filed for bankruptcy protection under the Companies' Creditors Arrangement Act

The Montreal-based company says it will continue to operate during the restructuring

The womensware company employs around 6,800 people and has 576 stores across the country

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.

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)