Reitmans receives CCAA extension
After filling for creditor protection and obtaining an initial order under the Companies' Creditors Arrangement Act (CCAA) on May 19, 2020, Reitmans said on Friday that it received a second extension.
The Canadian retailer was issued an extension by the Québec Superior Court until May 28, 2021. Previously, it obtained an extension until January 22, 2021.
“Reitmans continues to make progress in the CCAA process with the assistance of Ernst & Young Inc., the Monitor appointed under the CCAA process, and expects to continue to make announcements as further material progress is made,” Reitmans said in a news statement.
Reitmans was one of many retailers to face the brunt of the Covid-19 pandemic back in May, though the retailer was already facing financial pressure before the Covid-19 crisis hit.
Since filing for creditor protection, Reitmans said it will exit two of its five fashion banners, as it attempts to re-position the company for long-term success.
Over the course of the summer, it closed its Thyme Maternity and Addition Elle brands, leaving the company to carry on the legacy of its three premium brands: Reitmans, Penningtons and RW & CO.
The Montreal-based company currently operates 415 stores consisting of 245 Reitmans, 92 Penningtons and 78 RW&CO.
For its most recent quarter ended October 31, 2020, sales decreased by $20.2 million, or 11 percent, to $163.4 million, primarily attributable to the net reduction of 35 stores.
Net loss from continuing operations for the third quarter of 2021 was $14.9 million or $0.31 per diluted share, as compared with a net loss of $9.4 million or $0.19 per diluted basic share for the third quarter of 2020.
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