Throughout the years, Bloor St. West, otherwise known as Mink Mile, has undergone some major changes. This year alone, we’ve seen new additions like an impressive Aritzia flagship and a massive McEwan’s, and we’re expected to see Canada’s first Eataly open this year.
But along with the changes comes a number of departures, and it looks like another retailer could be at risk.
Long-standing Toronto retailer, Davids Footwear, was recently placed in receivership.
For those unaware, receivership is when a “receiver” is appointed by a creditor to take over all of the assets, undertakings, and properties from the debtor. In the retail world, a receiver will host liquidation sales so that creditors can recoup their money.
In Davids Footwear’s case, Richter Advisory Group has been made the receiver by Rosejack Investments, which owns 70% of Davids and is affiliated with Larry Rosen, the CEO of Harry Rosen. Larry Rosen is also a Director of Rosejack Investments and Director and CEO of Davids.
As you might remember, Harry Rosen entered into a partnership with Davids Footwear in 2017, with plans on expanding the independent footwear chain to 20 stores.
Early August, all five Davids Footwear locations began liquidation, with 20% off all regular priced merchandise.
Davids currently has four stores in Toronto and one store in Ottawa, and has been in the business for over 60 years.
According to an affidavit of Larry Rosen, Davids has faced a number of financial challenges.
Like many other retailers, Davids was faced with tough competition in the footwear market. Coupled with rising rents and the loss of the retailer’s most popular vendor, Valentino, Davids has been struggling to stay afloat.
The affidavit states that as of July 31, 2019, Davids owes Rosejack just over $9 million. We have not found evidence of bankruptcy filings, and receivership and bankruptcy aren’t always mutually exclusive. However, Larry Rosen does note a “wind down of the Davids Business,” and Davids Footwear’s Instagram and Facebook pages seem to be deleted.
For now Davids Footwear remains open — only time will tell what will happen next.
The online store is closed, but shoppers can head in-store to find deals on luxury footwear brands like Manolo Blahnik, Chloe, Christian Louboutin, Jimmy Choo, and more.
We’ll keep you updated as the story progresses.
Featured image: Twitter/@yorkdalestyle
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