picard102
Senior Member
Half of that was office/residential, which they could probably still proceed with. Even the mall expansion I doubt they'd struggle to find tenants, it was packed when I was there on Friday.
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The Retail Apocalypse
- Thread starter Johnny Au
- Start date
AlbertC
Superstar
G-Star Raw files for bankruptcy protection in the US:
www.just-style.com
G-Star Raw files for bankruptcy protection in US
Denim fashion brand G-Star Raw has filed for Chapter 11 bankruptcy in the US after the effects of the Covid-19 pandemic weighed on business.
www.just-style.com
AlbertC
Superstar
‘Frustrating’: Old Navy customers say packages not delivered, missing amid COVID-19 - National | Globalnews.ca
Global News reached out to Old Navy for comment, but did not hear back by time of publication.globalnews.ca
The Gap/Old Navy/Banana Republic are still openly taking online orders in Canada, billing customers immediately, but are evidently shipping out nothing. I saw a deep discounted pair of jeans on The Gap Canada website and ordered it on June 15. On June 16th my credit card was charged and I received an email which said "your order has shipped" with a UPS tracking number which indicated it should arrive by July 2.
It's now July 4 and UPS tracking shows they have yet to pick up the order. The problem is clearly not on the UPS side. They are refusing to pick up orders there specifically. There are rumours The Gap is so far behind on paying invoices to UPS that they were cut off totally, yet they are still taking new orders on their website like nothing is happening.
They must have gotten their act together for newer orders. I bought some pants on sale from Old Navy online on July 2nd, and they arrived yesterday which was way earlier than the original "arrive by July 23rd" window given.
AlbertC
Superstar
Comprehensive article on confirmed and pending store closures throughout Canada:
www.retail-insider.com
Wave of Store Closures to Hit Canada in the Summer of 2020
Many stores will be closing in Canada over the summer as brands are hit hard in the wake of the COVID-19 pandemic. While it’s challenging to quantify the number of permanent closures at this time, it appears hundreds of individual store locations in Canada will be vacated before the fall.
www.retail-insider.com
Jonny5
Senior Member
As a card carrying cynic, I see that as getting in front of the PR problem on social media by suddenly making it look like everything is fine
Jonny5
Senior Member
Comprehensive article on confirmed and pending store closures throughout Canada:
Wave of Store Closures to Hit Canada in the Summer of 2020
Many stores will be closing in Canada over the summer as brands are hit hard in the wake of the COVID-19 pandemic. While it’s challenging to quantify the number of permanent closures at this time, it appears hundreds of individual store locations in Canada will be vacated before the fall.
An interesting statement in there.
Retail in The Beaches has already been famously in question for years. Perhaps some landlord bankruptcies might actually shake things up and reverse the trend by finally making available some retail stores with cheap rent deals for a year to at least get the business up and running before rent increases to a full market rate.
They mentioned ALDO too. I saw they have slashed everything by 50% online and bought two pairs of shoes I (used to) wear to work. I assume some day soon I will need those again, and the fact they were available at the same size and style, but with a price cut from $120 down to $60 with free shipping made them kind of irresistable to buy, even if it felt like I was picking at the bones of their carcass.
AlbertC
Superstar
Queen West is another retail district that looks poised to take a heavy hit. Ben Sherman have announced they're closing their location, and altogether there's somewhere around half a dozen or more eateries on Queen between Spadina and Gladstone that have already closed throughout the pandemic. While last time I checked, Ossington and Dundas West have been holding things down so far for the most part.
In the long run, I hope to see a new equilibrium established for retail leases. Within the past decade or so, rents have skyrocketed to a point where margins and profitability have become extremely difficult to achieve.
On the topic of Aldo, the Quebec government is looking towards providing them with a capital injection amid their restructuring:
Quebec Eyes Investment in Shoe Chain Aldo Amid Restructuring - BNN Bloomberg
Footwear retailer Aldo Group Inc. could receive a capital injection from Quebec’s government as it works through a court restructuring triggered by the pandemic.
www.bnnbloomberg.ca
Rimsky44
Active Member
Brooks Brothers files for Chapter 11 bankruptcy protection -- court filing
Brooks Brothers files for chapter 11
nationalpost.com
With the work from home trend, Brooks Brothers is the exact opposite of Lululemon.
TheKingEast
Senior Member
So many businesses going bely up. While the businesses should face some blame I also blame the government for really not handling the virus situation properly. Way too much sitting around until it was too late. Full scale lockdowns for months just never made much sense to me especially in areas where there were such a small number of infections. But nevertheless if the lockdowns needed to happen then the government should take care of those who have been affected.
AlbertC
Superstar
DavidsTea requests court protection while it negotiates with landlords
July 8, 2020
MONTREAL, Ont. — DavidsTea is seeking court protection from creditors so it can continue operating while it restructures and plans to close a significant number of its stores.
The Montreal-based company said Wednesday it will seek an order in Quebec Superior Court to allow it to restructure under the Companies' Creditors Arrangement Act.
It also plans to seek similar orders for its U.S. subsidiary under Chapter 15 of the U.S. Bankruptcy Code.
The company said during the restructuring process it plans to continue operating online through davidstea.com and its wholesale distribution channel, which supplies grocery stores and pharmacies.
"The transformation of our business model is necessary to position the company for a return to profitability," chief financial officer Frank Zitella said in a statement.
"DavidsTea has experienced a multi-year decline in brick and mortar sales and the post COVID-19 retail environment creates significant challenges for our unique in-store customer experience."
It had warned in mid-June that it hadn't paid rent on any of its stores for April, May and June and that it may seek a formal restructuring.
Zitella said Wednesday it would seek more favourable lease conditions from landlords and ultimately may terminate "a significant number" of its 222 leases.
ca.finance.yahoo.com
July 8, 2020
MONTREAL, Ont. — DavidsTea is seeking court protection from creditors so it can continue operating while it restructures and plans to close a significant number of its stores.
The Montreal-based company said Wednesday it will seek an order in Quebec Superior Court to allow it to restructure under the Companies' Creditors Arrangement Act.
It also plans to seek similar orders for its U.S. subsidiary under Chapter 15 of the U.S. Bankruptcy Code.
The company said during the restructuring process it plans to continue operating online through davidstea.com and its wholesale distribution channel, which supplies grocery stores and pharmacies.
"The transformation of our business model is necessary to position the company for a return to profitability," chief financial officer Frank Zitella said in a statement.
"DavidsTea has experienced a multi-year decline in brick and mortar sales and the post COVID-19 retail environment creates significant challenges for our unique in-store customer experience."
It had warned in mid-June that it hadn't paid rent on any of its stores for April, May and June and that it may seek a formal restructuring.
Zitella said Wednesday it would seek more favourable lease conditions from landlords and ultimately may terminate "a significant number" of its 222 leases.
DavidsTea requests court protection while it negotiates with landlords
MONTREAL, Ont. — DavidsTea is seeking court protection from creditors so it can continue operating while it restrutures and plans to close a significant number of its stores.The Montreal-based company said Wednesday it will seek an order in Quebec Superior Court to allow it to restructure under...
ca.finance.yahoo.com
Towered
Senior Member
Queen West is another retail district that looks poised to take a heavy hit. Ben Sherman have announced they're closing their location, and altogether there's somewhere around half a dozen or more eateries on Queen between Spadina and Gladstone that have already closed throughout the pandemic. While last time I checked, Ossington and Dundas West have been holding things down so far for the most part.
In the long run, I hope to see a new equilibrium established for retail leases. Within the past decade or so, rents have skyrocketed to a point where margins and profitability have become extremely difficult to achieve.
On the topic of Aldo, the Quebec government is looking towards providing them with a capital injection amid their restructuring:
Quebec Eyes Investment in Shoe Chain Aldo Amid Restructuring - BNN Bloomberg
Footwear retailer Aldo Group Inc. could receive a capital injection from Quebec’s government as it works through a court restructuring triggered by the pandemic.
It could possibly be a silver lining regarding Queen West - gentrification and the resulting high rents pushed out most of the unique small businesses that made the street interesting in the first place. Perhaps there will be an opportunity for shops of that nature to return and reduce the soullessness that started taking hold 20 years ago.
picard102
Senior Member
Personally the soulless gentrification has been a big improvement in quality and selection of stores and services.
AlbertC
Superstar
MEC announces more layoffs due to impacts of coronavirus pandemic
Jul 8 2020
Vancouver-based Mountain Equipment Co-op (MEC) has announced more layoffs across the company due to the COVID-19 pandemic.
dailyhive.com
Jul 8 2020
Vancouver-based Mountain Equipment Co-op (MEC) has announced more layoffs across the company due to the COVID-19 pandemic.
MEC announces more layoffs due to impacts of coronavirus pandemic | Venture
Vancouver-based Mountain Equipment Co-op (MEC) has announced more layoffs across the company due to the COVID-19 pandemic.
dailyhive.com
AlbertC
Superstar
Bed Bath & Beyond to Close One-Fifth of Stores in Next Two Years
July 8, 2020
Bed Bath & Beyond Inc. plans to shrink its store base, closing 200 stores over the next two years in a bid to cut costs and weather one of retail’s most challenging periods yet.
The home goods retailer, which operates more than 950 of its namesake stores in the U.S. and Canada, declined to say how many jobs will be eliminated when it shutters about one-fifth of locations. It will try to place associates in surrounding stores when possible, and more details will be released in October, Chief Executive Officer Mark Tritton said in an interview.
business.financialpost.com
July 8, 2020
Bed Bath & Beyond Inc. plans to shrink its store base, closing 200 stores over the next two years in a bid to cut costs and weather one of retail’s most challenging periods yet.
The home goods retailer, which operates more than 950 of its namesake stores in the U.S. and Canada, declined to say how many jobs will be eliminated when it shutters about one-fifth of locations. It will try to place associates in surrounding stores when possible, and more details will be released in October, Chief Executive Officer Mark Tritton said in an interview.
Bed Bath & Beyond to Close One-Fifth of Stores in Next Two Years
(Bloomberg) — Bed Bath & Beyond Inc. plans to shrink its store base, closing 200 stores over the next two years in a bid to cut costs and weather one of…
business.financialpost.com
AlbertC
Superstar
Why YEEZY might not be enough to save Gap
July 9, 2020
Gap’s (GPS) new partnership with Kanye West’s YEEZY brand could infuse “hype and publicity” into the struggling clothing retailer, but it may not be enough to woo new customers long term, say BofA analysts.
“If successful, we expect an initial sales lift from the launch but we remain skeptical this bounce alone will be enough to attract and more importantly keep a younger demographic of Gap customers longer term,” wrote the analysts, reiterating the firm’s Underperform rating.
The YEEZY Gap line launching next year is seen as a way of reinvigorating the brand. The stock surged 15% the day the partnership was announced.
However BofA highlights many variables about the collaboration are still unknown.
“While this will bring newness, we have doubts around the impact's duration and see an elevated risk of distractions from the partnership (i.e. West recently tweeted he is running for President),” wrote the analysts.
ca.finance.yahoo.com
July 9, 2020
Gap’s (GPS) new partnership with Kanye West’s YEEZY brand could infuse “hype and publicity” into the struggling clothing retailer, but it may not be enough to woo new customers long term, say BofA analysts.
“If successful, we expect an initial sales lift from the launch but we remain skeptical this bounce alone will be enough to attract and more importantly keep a younger demographic of Gap customers longer term,” wrote the analysts, reiterating the firm’s Underperform rating.
The YEEZY Gap line launching next year is seen as a way of reinvigorating the brand. The stock surged 15% the day the partnership was announced.
However BofA highlights many variables about the collaboration are still unknown.
“While this will bring newness, we have doubts around the impact's duration and see an elevated risk of distractions from the partnership (i.e. West recently tweeted he is running for President),” wrote the analysts.
Why YEEZY might not be enough to save Gap
Gap’s new partnership with Kanye West’s YEEZY brand could infuse “hype and publicity” into the struggling clothing retailer, but it may not be enough to woo new customers long term, say BofA analysts.