DavidsTea recordsdata for chapter safety; some retail shops will not reopen

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DavidsTea Inc. turned the most recent Quebec retailer to file for chapter safety in 2020 amid the coronavirus pandemic because it couldn’t overcome the closure of its retail community.

The Montreal-based tea service provider stated Wednesday its software for an preliminary order below the Firms’ Collectors Association Act will in all probability be heard by the Quebec Superior Courtroom by the tip of the day. It plans to use for comparable orders for its U.S. subsidiary below Chapter 15 of the US Chapter Code, in keeping with a company statement.

DavidsTea joins retailers comparable to shoe vendor Aldo Group, clothes chain Reitmans Canada Ltd. and sporting-goods firm SAIL Open air Inc. in searching for chapter safety this yr on account of the disaster. DavidsTea shut its shops March 17, and stated Wednesday they might stay closed till additional discover.

Because it morphs right into a “leaner and extra environment friendly firm,” DavidsTea stated it plans to “considerably” scale back its brick and mortar footprint whereas accelerating a transition to on-line retailing and wholesale distribution in North America.