It’s a sad day for any tea lovers out there. It’s just been announced that David’s Tea will be closing all of its US stores and some of its Canadian stores as it prepares to file for bankruptcy protection.
In a statement, the Montreal-based company said it’s implementing a restructuring plan that’ll shift its focus to online retail as well as wholesale distribution of high-quality tea and accessories.
This means that most of the tea chain’s stores will close but its online business and sales in grocery stores and pharmacies across Canada are set to still continue, along with 18 Canadian locations.
It seems that COVID-19 is the culprit for the chain’s difficulties. DavidsTea hasn’t paid rent since its locations closed temporarily back in March.
Frank Zitella, CFO and COO of DAVIDsTEA, says “DAVIDsTEA“The impact of the COVID-19 pandemic on consumer confidence and the way in which people shop may further affect the extent and timing of a recovery in brick & mortar retail traffic…”
Right now there are 220 company-owned and operated retail stores in Canada and the United States and over 2,500 grocery stores and pharmacies across Canada carry a selection of products.
There’s no word yet on how many David’s Tea stores will be closed but we will keep you updated as information becomes available.
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