Reitmans (Canada) Ltd. says the insolvent clothing retailer will close its Thyme Maternity and Addition Elle stores over the summer, affecting about 1,400 employees, as part of its corporate restructuring.
The Montreal-based company says it will focus on three brands: Reitmans, Penningtons and RW & CO.
The brands will combine an e-commerce focus and a retail network of stores as part of the company’s efforts to “optimize its retail footprint.”
The restructuring is taking place under the protection of the Companies’ Creditors Arrangement Act.
READ MORE: Reitmans seeks court protection from creditors, plans restructuring
Reitmans operates 54 Thyme Maternity stores and 77 Addition Elle locations, which will close along with their e-commerce websites on July 18 and Aug. 15 respectively.
About 1,100 store employees and 300 head office employees will be affected by the brand closures.
“All of the efforts we put forth to turn these brands around were derailed by the COVID-19 pandemic and, unfortunately, we can no longer afford the required resources to bring them back to profitability,” CEO Stephen Reitman says in a news release.
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