Reitmans to close Hyba retail stores
Canadian retailer Reitmans announced last week plans to close its Hyba retail locations across Canada.
A total of 17 Hyba store locations will close by next February, prior to the end of the company’s current fiscal year.
The well-priced activewear line for women will live on however, and will continue to be sold through the company's 270 Reitmans store locations as well as online.
The Hyba line was launched in 2013, while the first retail locations opened in 2015. The women's fashion retailer choose to convert some former Smart Set store locations (a Reitmans brand that has been discontinued) in order to expand the Hyba brand's presence in the marketplace.
In a news statement, the company said that “management is confident in the long-term growth potential of the Hyba brand and has determined that the optimum strategy is to continue to offer Hyba-branded products across Canada through the Company's 270 Reitmans store locations, as well as e-commerce through the Reitmans website."
Hyba retail store sales represent less than 2 percent of the company's total annual sales. Reitmans says it will take a non-cash charge of about $1.5 million related to the closures.
In Reitmans last reported quarter, the company suffered a net loss and saw sales tumble 1.3 percent.
Year-to-date the company is also in the red with gross profit down 2.2 percent at $387.8 million as compared with $396.6 million.
The company’s full-year results will be reported on April 4.
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