Comark Holdings Inc., the parent company of Canadian retail chains Ricki’s and Cleo, has announced its decision to close all stores under these two well-known fashion brands.
The closure comes as part of a broader restructuring effort, which includes filing for creditor protection under the Companies’ Creditors Arrangement Act (CCAA).
This decision follows a challenging period for the company, marked by multiple setbacks, including the COVID-19 pandemic, a November 2021 ransomware attack, and the ongoing pressures from rising competition in the fashion retail industry.
Comark Holdings also faced significant supply chain disruptions, all of which have contributed to the company’s financial struggles.
Ricki’s, known for its women’s fashion and Cleo, which also caters to women with a focus on workwear and casual styles, have been staples in the Canadian retail market for decades.
The brands have built strong customer bases over the years, but they have struggled to adapt to changing market conditions, such as the shift to online shopping and the growing dominance of fast-fashion retailers offering low-cost alternatives.
In addition to the closure of Ricki’s and Cleo stores, certain Bootlegger locations will also be impacted. However, the company will continue to explore opportunities for Bootlegger as part of the creditor protection process.
Comark is expected to reduce its retail footprint significantly as it looks to restructure its operations and find a sustainable path forward.
The closures of Ricki’s and Cleo will affect a combined 129 stores across Canada, which include 75 Ricki’s locations and 54 Cleo stores. Comark Holdings operates a total of 221 stores across eight Canadian provinces, including 20 joint locations and a number of sites shared with Bootlegger.
As part of the restructuring process, Comark is seeking a court order to approve the liquidation of all Ricki’s and Cleo stores, though the storefronts will remain operational during the liquidation period.
This development highlights the increasing challenges faced by traditional brick-and-mortar retailers in Canada.
While many businesses are shifting towards e-commerce models, physical stores continue to close as companies grapple with adapting to evolving consumer preferences and the competitive retail environment.
Other retail brands have also sought creditor protection in recent years, indicating a broader trend within the industry.
Comark Holdings’ decision to shut down Ricki’s and Cleo comes as a major blow to loyal customers, but the company will continue to operate in some capacity while working to restructure its business model.
The company has not yet provided further details on the timeline for the closures or how the liquidation process will unfold.
The Canadian retail landscape will continue to evolve, with more focus on how companies can balance both online and in-store shopping experiences to meet the demands of today’s consumers.
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