Aug 4, 2020
Chico's FAS Canada files for bankruptcy, to close stores
Aug 4, 2020
Chico’s FAS Canada, a subsidiary of US women's clothing and accessories retailer Chico’s FAS, has filed for bankruptcy in Ontario, saying it plans to permanently close all 10 of its stores in the country — four Chico’s and six White House Black Market locations, all of which have been closed since mid-March to prevent the spread of the coronavirus.
Chico’s FAS, which houses the Chico’s, White House Black Market, Soma and TellTale brands, reported a $178 million loss last quarter because of the coronavirus shutdown. The company is now also anticipating a non-material charge during fiscal 2020 because of the Canadian bankruptcy.
It will, however, continue its e-commerce platforms in Canada through chicos.com, chicosofftherack.com, whitehouseblackmarket.com and soma.com The Canadian stores will begin closing sales in early this month and will continue for about two months.
“The closure of the Canadian boutiques is part of the company’s ongoing cost-savings measures taken to mitigate the impact of the COVID-19 pandemic and address the operational and financial challenges associated with operating in Canada,” Molly Langenstein, chief executive officer and president of Chico’s FAS, said in a statement.
She added that the Canadian operations generated negative cash flow during the company’s last fiscal year, which ended on February 1, North American media outlets reported. The company reportedly had plans to close between 50 and 60 stores this year.
Copyright © 2021 Fibre2Fashion. All rights reserved.