The sweeping closures, announced Thursday, more than double the 82 store closures announced earlier this month.
“The new retail landscape has forced us to re-evaluate how we can bring tea to our fans most effectively,” the company said in a statement. “Even though we believe in the need for evolution, change can be difficult.”
The specialty tea company announced earlier this month that it will move its online business and “dramatically reduce” the number of stores amid restructuring under the Companies’ Creditors Arrangement Act, Canadian law that covers insolvent businesses.
DavidsTea was founded in Montreal in 2008 and has gradually expanded to malls and stand-alone locations across Canada. But because the pandemic forced stores to close on March 17, the company did not pay store rent in April, May and June.
The abandonment of physical businesses comes after years of challenges for DavidsTea. Last month, the company said it lost $ 23.2 million out of $ 146.5 million in revenue. These losses include a loss of US $ 4.3 million in the fiscal fourth quarter on US $ 54.8 million of revenue.
With files from The Canadian Press