Reitmans files for creditor protection amid pandemic pain
Canadian retailer Reitmans Ltd. announced it filed for creditor protection Tuesday under the Companies’ Creditors Arrangement Act (CCAA) to facilitate restructuring under the crushing impact of the COVID-19 pandemic.
"Filing for protection under the CCAA is truly the hardest decision we have had to make as an organization in our almost one hundred years of history, but this pandemic has left us no choice – we believe that this is the only course of action to ensure we remain successful in the future,” said Reitmans President and CEO Stephen Reitman in a release.
The company, which opened for business 94 years ago, said it will continue operations as it restructures and will “look to optimize its retail footprint in Canada to emerge from this process in a stronger state.”
At the start of May, the Montreal-based retailer, which closed its stores due to the pandemic on March 17, said it was actively seeking additional financing and warned about its future if it wasn’t able to obtain necessary financing.