Crabtree & Evelyn Has Filed For Creditor Protection
In an industry where the competition is always growing — popping up left, right, and centre — it’s getting harder and harder for retailers to stay afloat.
Remaining relevant after being in the retail scene for years has proven difficult for many stores and brands. We’ve seen once-popular Canadian companies like Bowing Brothers, Bombay Company, and Jean Machine, as well as international companies like Gap, close down stores, and the sad news keeps on coming.
Just recently, Crabtree & Evelyn filed for creditor protection.
Our friends at Retail-Insider report that the Canadian operations for the retailer filed for creditor protection in November. The retailer has quietly been exiting malls for years. As it stands, Crabtree & Evelyn operates 19 stores in Canada: 11 in Ontario, 6 in British Columbia, one in Alberta, and one in Quebec. The brand can also be found at a variety of specialty retailers.
Many will remember Crabtree & Evelyn as one of the OGs of bath and body products.
In the ’90s and early ’00s, the brand’s gift sets were a go-to holiday staple. Throughout the years, competition has grown, with retailers like Bath & Body Works, The Body Shop, and The Face Shop slowly taking over.
Crabtree & Evelyn Canada has been experiencing “significant” losses.
In addition to rising competition, the filing in the Quebec Superior Court states that the losses can be attributed to the rise of online shopping, the decline of traditional retail traffic, and the change of consumer tastes.
According to the filing, Crabtree & Evelyn Canada has $1.3 million in assets (primarily inventory). The company’s debts are listed at $15.2 million. Insolvency Insider reports that after some research and analysis of the stores, the company has determined that it’s in the best interest of stakeholders to liquidate assets. Funds produced will be distributed to creditors.
Shoppers and fans of the brand can expect the liquidation of stores to end before December 31.
Liquidation of Crabtree & Evelyn Canada stores have commenced. If you’re interested in seeing what kind of deals the stores have on offer, in Toronto and the GTA, the retailer has locations in the Holt Renfrew Centre, Scotia Plaza, and Square One Shopping Centre.
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