By Daily Mail (U.S.) | Created at 2025-01-10 03:11:40 | Updated at 2025-01-10 08:53:57
5 hours ago
A beloved bargain fashion chain has announced the closure of all 221 of its stores in Canada.
Brands Ricki's and Cleo, who are owned by parent company Comark Holdings, are to shut all of their combined 221 stores.
Comark Holdings filed for bankruptcy in June 2020 blaming disruption brought about by the Covid-19 pandemic.
It closed 30 of its underperforming locations at the time, Canadian news outlet Insauga reported.
The company has not yet emerged from bankruptcy and the closure of the rest of its branches are part of proceeding under order from the Ontario Superior Court of Justice.
'After careful consideration of all reasonably available options, the Company has determined that it is in the best interests of its stakeholders to wind down its Ricki's and cleo operations and to close all Ricki's and cleo retail store locations,' Comark said in a press release announcing the closures.
The company, whose stores are found in shopping malls and big box power centres, continued to struggle after pandemic restrictions lifted, according to filings made to the court.
In 2021 it was hit by a cyber attack that compromised its internal system and inventory.
Ricki's opened its first location in Winnipeg in 1939, and is now closing all of its locations
The proliferation of low-cost fast fashion retailers in recent years has also created a tougher market for the company's brands.
Comark said it intends to seek another court order to allow it to fully liquidate all Ricki's and Cleo stores, but that they will remain open during this process.
Some Bootlegger stores, which are also owned by the company, will be liquidated too.
The company's roughly 200 stores are spread across Canada in areas including British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, New Brunswick, Nova Scotia and Newfoundland and Labrador.
The stores combined have more than 2,000 workers who will likely be affected, Insauga reported.
Ricki's opened its first location in Winnipeg in 1939.
The closures suggests a grim start for North American retailers after 2024 saw the closure of 7,344 stores, according to Coresight data.
The most recent big retail bankruptcy was Container Store, which filed for Chapter 11 protection on December 22.
A red dress sold by Rickie's, the beloved fashion chain that has faced fierce competition in the years following the pandemic
Party City is shutting down all its stores immediately after nearly four decades in business
Earlier that month, Big Lots said it was beginning 'going out of business' sales at all its stores across the US, after filing for bankruptcy in September.
The company initially said it was closing all its 963 remaining locations, after a sale to a private equity firm fell through - but has since found an investor that should keep between 200 and 400 open.
Meanwhile after nearly four decades as a US retail institution, Party City announced last week it would close all of its 850 stores in coming weeks.
America's top department store Macy's also announced it would shutter 65 locations across the country before the end of January.
