By
Staff
The Canadian Press


Posted July 9, 2020 5:54 pm

 
 


Updated July 9, 2020 6:10 pm


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Insolvent beverage retailer DavidsTea is closing 82 stores in Canada and all 42 of its stores in the U.S. as it focuses on its e-commerce business and supplying grocery stores and pharmacies.

The Montreal-based company says it is sending notices to terminate the leases at the 124 stores to take effect in 30 days.

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DavidsTea files for bankruptcy protection while negotiating with landlords

It says it will also seek more favourable lease terms for the remaining 100 stores in Canada.

The store closures are part of its restructuring plan after it obtained court protection from creditors under the Companies’ Creditors Arrangement Act and Chapter 15 in the United States Bankruptcy Court for the District of Delaware.

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$343-billion deficit projected for 2020-2021 fiscal year

$343-billion deficit projected for 2020-2021 fiscal year

Company founder and interim CEO Herschel Segal says the closure of “unprofitable stores” will help create a stronger business model for the future and ensure the long-term success and sustainability of the brand.

Chief financial officer Frank Zitella says it may permanently close additional stores if it is not able to negotiate more favourable lease terms from landlords.

 

This is a breaking news story that will be updated as new information becomes available.

 




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