In a significant turn of events affecting Canadian fashion, Comark Holdings Inc., the parent company of popular clothing brands Cleo and Ricki’s, has announced it will close all stores under these names. This decision comes as the company filed for creditor protection, a move that signals serious financial troubles within the company. It’s a tough time for shoppers and employees who have come to rely on these familiar stores for their fashion needs.
Closure Announcement
Comark Holdings is based in Vancouver and operates a total of 221 stores across eight provinces in Canada, including Cleo and Ricki’s. The announcement that they will close all locations for these two brands is alarming for many who have enjoyed shopping there. This means that everyone from loyal customers to employees will feel the impact as the company begins the liquidation process for these stores.
Why Did This Happen?
Several reasons are cited for the struggles that led to this tough decision. The COVID-19 pandemic hit many businesses hard, and Comark was not spared. They faced numerous challenges, including a ransomware attack, increased competition, and supply chain issues that made it difficult to keep up with demand and maintain operations. With debts amounting to around $61 million owed to vendors and landlords, it became clear that drastic steps were needed for the company to survive.
Employees Affected
As Comark prepares to close its Ricki’s and Cleo locations, approximately 2,056 employees are left uncertain about their futures. Losing a job is never easy, especially during these challenging economic times, and many workers are now worrying about what they will do next. The company aims to support its employees while transitioning through this difficult period, but changes in the retail landscape mean that finding new roles may prove challenging.
What’s Next for Bootlegger?
While Ricki’s and Cleo are shutting their doors, Comark will still explore the future of their Bootlegger brand. Although the company is looking into restructuring options to reduce its retail footprint, it’s not clear how many of these stores will remain open. The hope is that by focusing on Bootlegger, Comark can navigate through this tough season and possibly find a way to keep part of its business alive.
| Store Brand | Action | Reason | Debt (approx.) |
|---|---|---|---|
| Cleo | Closed | Financial troubles | $61 million |
| Ricki’s | Closed | Financial troubles | $61 million |
| Bootlegger | Restructuring | Pursuing options | N/A |
The Bigger Picture
This situation isn’t isolated. Retailers across Canada are facing unprecedented challenges. Other retailers like Frank and Oak are also seeking creditor protection. Frank and Oak has cited losses stemming from the pandemic and has a significant debt of approximately $71 million. With these closures revealing heightened competition and ongoing economic difficulties, many are left wondering about the future of retail in Canada and how these changes will impact shopping habits.
How Consumers Can Prepare
For consumers, it is important to stay informed about where and how to get their favorite clothing, especially as several stores close down or change ownership. Shoppers might want to explore online options, where many brands have adapted and thrived during these challenging times. Staying updated through local news can offer insights into which stores are thriving and which ones are closing. As we navigate this uncertain future, supporting local businesses can also make a big difference.
While the closure of Cleo and Ricki’s marks the end of an era for many Canadians who have shopped there over the years, the retail landscape is constantly evolving. Shoppers and employees alike must adapt to the changes, hoping for new opportunities to arise from this challenging situation.
