Reitmans will lay off 1,400 employees – including 300 in Montreal – while the brand is repositioning itself “for long-term success” by closing its Addition Elle and Thyme Maternity stores, it was announced Monday.
The fashion retailer, who also owns and operates the Reitmans, Penningtons and RW & CO stores, said it would close all Thyme Maternity and Addition Elle stores this summer. The stores will remain open long enough to liquidate part of their inventory, but will close permanently on July 18 and August 15, respectively.
“The strategic decision to close two beloved Canadian fashion brands was not taken lightly, but is necessary to allow our business to grow as a profitable organization,” said Reitmans CEO Monday. , Stephen F. Reitman, in a press release. “All of our efforts to redress these brands have been compromised by the COVID-19 pandemic and, unfortunately, we can no longer afford the resources to bring them back to profitability.”
On May 19, Reitmans Canada announced that it would restructure its business “under the protection of the Companies’ Creditors Arrangement Act,” the release said.
Reitmans said that women who buy at Addition Elle can find inclusive size clothing at Reitmans.
“As we move forward with these three flagship Canadian brands, our intention is to write the next chapter in our company’s history for a stronger and brighter future,” said Reitman.
All Reitmans-owned stores will reopen gradually as public health officials across the country lift the isolation measures put in place to limit the spread of the COVID-19 virus.