The global health crisis has claimed many retailers victim since it was declared. In just a few months, we’ve seen retailers like Victoria’s Secret, J.Crew, and Gap struggle to stay afloat, and the list continues to grow.
According to Retail Insider, Ontario-based Comark has filed for bankruptcy protection.
The company operates Bootlegger, Cleo, and Ricki’s. This will be the second time in five years that the retailer has filed for bankruptcy protection. Comark also filed for bankruptcy protection in 2015.
The company operates around 300 stores across Canada. Most of the company’s store locations are based in malls, which has made business particularly difficult amidst COVID-19. Malls in Ontario remain temporarily closed aside from stores with street-facing entrances, and about 40% of Comark’s stores are located in the province.
In a statement, Comark said it would shutter low performing locations.
The company plans on restructuring and lowering its costs by ending some leases and optimizing its performance in remaining locations. While it’s currently unknown which stores will close, Retail Insider says the majority of stores will remain open and each brand will continue to operate online.
In Canada alone, we’ve seen retailers like Reitmans, Aldo Shoes, and Henry’s struggle, and according to industry insiders, it’s likely that we will continue to see more stores file for bankruptcy protection in the coming months.
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