The Company That Owns Dynamite & Garage Has Filed For Creditor Protection

The Company That Owns Dynamite & Garage Has Filed For Creditor Protection

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.

dynamite store closing
Groupe Dynamite

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.

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