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DavidsTea formally announces plans to reopen only 18 of its stores

A woman wearing a protective mask walks past a closed DavidsTea store in Montreal on Wednesday, July 8, 2020.
A woman wearing a protective mask walks past a closed DavidsTea store in Montreal on Wednesday, July 8, 2020. THE CANADIAN PRESS/Paul Chiasson

Montreal-based DavidsTea announced plans to reopen only 18 of its 100 stores across Canada on Thursday.

The move comes after DavidsTea closed 82 other stores in Canada and all 42 of its stores in the U.S. in early July to focus on its e-commerce business and supplying grocery stores and pharmacies.

Read more: DavidsTea files for bankruptcy protection while negotiating with landlords

All 18 of its stores that are reopening are located in major shopping centres or malls.

The company says it was able to secure new, more favourable lease terms and conditions for the stores.

Seven will be in Quebec, five in Ontario, and the rest in Alberta, British Columbia, Manitoba and New Brunswick. Under proposed new lease terms for those remaining stores, the company will have the right either to terminate or to extend the leases at the end of 2020.

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The tea retailer is currently restructuring under the Companies’ Creditors Arrangement Act (CCAA).

“We believe that a selected group of our top-performing stores, complementing our growing online and wholesale business model and supported by an entrepreneurial organization, will enable DavidsTea to emerge from the CCAA restructuring process as a stronger and more resilient organization,” said Herschel Segal, DavidsTea’s chairman and interim CEO.

The company says it has sent lease termination notices for its 82 remaining stores across the country. They will take effect in 30 days.

Below is a list of locations that will reopen:

B.C.

  • Pacific Centre, Vancouver

Alberta

  • Chinook Centre, Calgary
  • Market Mall, Calgary
  • West Edmonton Mall, Edmonton

Manitoba

  • Polo Park, Winnipeg

Ontario

  • Limeridge Mall, Hamilton
  • Masonville Place, London
  • Rideau Centre, Ottawa
  • Sherway Gardens, Toronto
  • Toronto Eaton Centre, Toronto

Quebec

  • Carrefour Laval, Laval
  • Dix30 • Brossard
  • Fairview Pointe-Claire, Montreal
  • Les Galeries d’Anjou, Montreal
  • Les Galeries de la Capitale, Quebec
  • Mega Centre Vaudreuil, Vaudreuil
  • Promenades St-Bruno, Saint-Bruno

New Brunswick

  • Champlain Place, Moncton

— With files from The Canadian Press

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