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Reitmans Ord Shs V.RET

Alternate Symbol(s):  RTMNF | RTMAF | V.RET.A

Reitmans (Canada) Limited is a Canada-based specialty apparel retailer for women and men, with retail outlets throughout the country. The principal business activity of the Company is the sale of women’s wear. The Company operates three different brands: Reitmans, Penningtons and RW&CO. The Reitmans banner is a specialty fashion destination. The Reitmans has an online presence and store locations across the country. Penningtons is a destination for plus-size fashion, ranging from sizes 14 to 32. Penningtons operates stores across Canada, as well as an ecommerce site at penningtons.com. RW&CO. operates stores averaging 4,500 square feet in premium locations in shopping malls, as well as on their e-commerce site. Specializing in menswear and womenswear, the brand delivers versatile, well-crafted collections and brand experiences. It operates approximately 391 stores under three distinct banners consisting of 226 Reitmans, 85 Pennington, and 80 RW&CO.


TSXV:RET - Post by User

Post by SCVALINVESTORon Nov 25, 2021 12:41pm
176 Views
Post# 34165604

Indication of post CCAA earning power

Indication of post CCAA earning powerActually, we do have a clue as to the post emergent earning power of Reitmans. The report on SEDAR for the Q ending July 31, 2021 shows revenue of $172M and earnings from operations of $23.9M or $0.50EPS. for the quarter. Lots of moving parts as it includes $6M grants from the Feds for CEWS and CERS and a reversal of over-provisioning, so you don't want to annualise it, but they do seem to be viable after closing down a couple of divisions.
Another reason for thinking mangement is highly motivated to make this deal work is the fact that there is a "top hat" pension plan with no funded assets and liabilities of $21M which will disappear if the deal falls through. 
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