MONTREAL -- Reitmans will be laying off 1,400 employees – 300 of which work in Montreal – as the brand repositions itself "for long-term success” by closing its Addition Elle and Thyme Maternity stores, it was announced on Monday.
The fashion retailer, which also owns and operates Reitmans, Penningtons and RW & CO stores, said it will close all Thyme Maternity and Addition Elle locations over the summer. The stores will remain open long enough to liquidate some of their stock, but will shut down permanently on July 18 and August 15 respectively.
“The strategic decision to close two beloved Canadian fashion brands was not made lightly, but it is necessary to enable our business to move forward as a profitable organization,” Reitmans CEO Stephen F. Reitman said in a press release on Monday. “All of the efforts we put forth to turn these brands around were derailed by the COVID-19 pandemic and, unfortunately, we can no longer afford the required resources to bring them back to profitability.”
On May 19, Reitmans Canada announced it would restructure its affairs “under the protection of the Companies’ Creditors Arrangement Act,” the release reads.
Reitmans said women who shop at Addition Elle will be able to find size-inclusive clothing at Reitmans.
“As we forge ahead with these three flagship Canadian brands, our intention is to write the next chapter of our Company's history for a stronger and brighter future,” Reitman said.
All Reitmans-owned stores will reopen gradually as public health officials across the country lift isolation measures put in place to limit the spread of the COVID-19 virus.
