It looks like another Canadian retailer has fallen victim to COVID. Groupe Dynamite, the Montreal-based company that owns Dynamite and Garage, recently filed for Creditor Protection.
Currently, Groupe Dynamite operated 400 stores in eight countries, with the majority of locations based in Canada. At this time, Retail Insider reports that the company is in negotiations with landlords.
No confirmed number of Garage and Dynamite store closings have been announced yet, but shoppers can expect locations to shutter in the future.
In a press release, the company stated that while the company saw record performance in 2019 and its online channels have shown incredible growth in the past six months, the pandemic has “created a corporate tsunami.” The overall growth has not been enough to offset the temporary store closures, lack of tourism, change in consumer behaviour, and economic uncertainty.
The company plans to restructure and is optimistic for the future.
With store closures on the way, the company says that there will be no impact to the head office and warehouse employees. There will be minimal impact to store employees, who will be relocated or transferred if their store closes.
As Garage and Dynamite store closings begin, shoppers can expect the company to continue focusing its efforts on its eComm channels.
Articles You Might Be Interested In
The Running List Of Retail Store Closures And Bankruptcies In 2020
ALDO Is Planning On Closing almost Half Of Its Canadian Stores
American Eagle Plans To Close A Number Of Stores By The End Of The Year
Ulta Beauty Announces It Won’t Open In Canada Until 2021
Ascena Retail Group, owner of Ann Taylor, Officially Files For Bankruptcy