This year has sucked for pretty much everybody, but Diesel’s found a silver lining. The Italian brand just opened its only full-priced store in Canada in Toronto’s Yorkdale Shopping Centre.
You’ve probably seen Diesel in Yorkdale before, since it’s held various locations there since 2012. But it used to have a much larger presence across Canada. Unfortunately, the company was forced to shutter its Toronto flagship on Yorkville Ave. in 2019, as well as a larger location on Montreal’s Rue de la Montagne. It still operates large outlet stores in both cities, but has said goodbye to many other units across the country.
Anyone outside Toronto can shop Diesel online or at multi-brand retailers, such as Hudson’s Bay.
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Over the past few years, Canada has seen some many once-beloved stores shutter locations or shut down business for good.
Just last year, we said goodbye to retailers like Bombay Company and Bowring Brothers, Nine West, and Jean Machine to name a few. And the retail apocalypse has already claimed many victims in 2019.
As we’ve done in past years, we are keeping a watchful eye on the retail store closures and bankruptcies that affect the Canadian market.
Below you’ll find a list of all the brands and retailers that have closed stores or filed for bankruptcy in 2019.
Note: This article will be updated as more stores and brands announce filings and closures.
Gymboree
Gymboree filed for Chapter 11 Bankruptcy for the first time in 2017. And just when the retailer thought it had escaped trouble successfully, in January 2019 the retailer successfully filed for Chapter 11 Bankruptcy once again. Industry experts blamed the children wear brand’s demise on the fact that Gymboree Group’s own collection of brands were competing against each other. After 40 years in business, Canadians will be saying goodbye to Gymboree for good as they shutter all Canadian locations.
Payless ShoeSource
In February 2019, Payless ShoeSource filed for Chapter 11 Bankruptcy for the second time in two years. But this time around, instead of launching a turnaround plan, the discount shoe retailer announced that it would be closing all North American locations including 248 stores across Canada.
H&M
For shoppers, H&M’s announcement of 160 store closures across the globe came as a shock. However for those in the industry, it was a decision that had to be made. The fast fashion retailer fell victim to inventory bloating, forcing H&M to slash prices in order to move product. In 2018, the conglomerate shuttered its Cheap Monday brand. And in February the company announced that it would be shuttering locations over the span of the year. Fortunately for H&M fans, the company will continue to open stores at the same time with a net of 175 new stores — however, it’s rumoured that Torontonians might be saying goodbye to the retailer’s Bloor St. location.
Home Outfitters
In February 2019, famed Canadian retailer Hudson’s Bay announced that it would be shuttering all Home Outfitters locations — 37 stores across Canada. In the same announcement, HBC announced that it would be analyzing its Saks Off Fifth locations and shuttering a number of its stores in the U.S. While no Saks Off Fifth closures have been announced in Canada, one thing’s certain: the retail landscape is ever-changing and we never know which retailer the apocalypse will claim as its next victim.
Gap
After years of struggle and constant markdowns, it came to no surprise when Gap announced massive closures were coming to North American stores. In March 2019, the company shared that it would shutter 230 stores in the U.S. and Canada. The mall staple also announced that it would be separating from sister brand Old Navy in order to better focus on both brands.
Victoria’s Secret
Over the years, Victoria’s Secret has seen a decline in popularity, with publishers like Forbes declaring that the company has “lost its sexy.” In March 2019, the Victoria’s Secret announced that it would be closing 53 stores across North America, up from 30 stores closed in 2018. While it has not been announced whether the decision will affect Canadian shoppers, we can confirm that we haven’t seen the end of the brand yet. With two new CEOs, the company plans to turn business around.
Diesel
In March 2019, Diesel jeans filed for bankruptcy. The company attributes the decision to falling sales, a failed turnaround, and expensive leases, as well as instances of cyber fraud and theft. But unlike other retailers and brands in similar positions, Diesel will not be shuttering stores. Instead the brand has a three year turnaround plan which includes reimagining current stores to lower operational costs and better marketing.
Green Earth
In March, Ontario-based Green Earth announced that it would be liquidating all 29 of its locations, offering discounts of 40-80% on all merchandise which includes candles, jewelry, and many more giftables. The company, which has been operating since 1990, felt pressure from problems similar to many stores facing problems: reduced mall traffic and growing competition. Green Earth filed a notice of intention to make a proposal under the Bankruptcy and Insolvency Act on March 4, 2019.
J.Crew
Though it launched in Canada with great success, the American retailer has been quietly closing stores across the country over the past few years. The most recent store closures include a number of Toronto-area locations, as well as CF Chinook Centre in Calgary. Retail Dive reports that executives at J.Crew will “continue to rationalize its footprint” and plan to close 20 J.Crew and factory stores by the end of 2019. With stores in Canada slowly disappearing, it will be interesting to see what’s ahead for the brand.
Forever 21
Earlier in 2019, Forever 21 closed its Yonge and Dundas flagship store, which didn’t seem like a big deal considering the brand already had another location inside CF Toronto Eaton Centre. But at the end of summer, word that the Los Angeles-based fast fashion retailer was struggling started spreading. At the end of September, the retailer announced that it would be closing all 44 of its Canadian locations and exiting the country altogether.
Lowe’s and Rona
At the end of November 2019, home improvement chain Lowe’s Canada announced that it would be shuttering stores across Canada in order to improve overall performance. The closures will affect 34 underperforming Lowe’s and Rona stores.
Bouclair
Another retailer that announced closures in November 2019 is Montreal-based Bouclair. The home decor retailer filed notices of intention to make a proposal under the Bankruptcy and Insolvency Act, and has been acquired by Alston Investment Inc. Of Bouclair’s total locations, 60 will remain open, while 29 across Canada will close.
Bentley Leathers
In December 2019, Montreal-based Bentley Leathers successfully entered a restructuring agreement, which includes the plan to close 90 underperforming stores across Canada. While underperforming stores are closing, the retailer will continue to open its concepts stores, which are sleeker and more modern.
Motherhood Maternity
After Destination Maternity filed for Chapter 11 bankruptcy in the U.S. in the fall of 2019, the company’s name, website, and operating assets were acquired by Marquee Brands LLC. However, all stores were announced to close across North America, including 29 Motherhood Maternity and Destination Maternity stores in Canada.
Bookmark this page for updates on the brands and retailers that have closed stores or filed for bankruptcy in 2019.
Featured image: Instagram/@kat_mcewen
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The retail apocalypse has claimed its next victim: a premium denim company that was majorly popular in the ’90s and ’00s.
As reported by Bloomberg, Diesel jeans has filed for bankruptcy. The company attributes the decision to falling sales, a failed turnaround, and expensive leases, as well as instances of cyber fraud and theft. The Chapter 11 petition, filed on Tuesday, March 5, claims that Diesel is about $50 million in debt.
But unlike many other retailers and brands in similar situations, Diesel doesn’t plan on shuttering.
Instead Diesel has a three-year plan to turn business around and won’t be announcing massive store closures anytime soon. With the majority of its brick-and-mortar stores in the United States, the court papers outline a strategy that includes opening new stores and reimagining older stores to bring down operation costs.
As it stands, Diesel only has two full-price stores in Canada: one in Yorkdale Shopping Centre and one in Yorkville, as well as two outlet stores: one in Toronto and another in Montreal. Diesel is also carried in a number of department stores across North America.
According to Bloomberg, Diesel hasn’t turned a profit for the past 10 years.
Best known for its premium denim, the brand saw a resurgence in the early 2000s when shoppers were more willing to pay $200 and more for designer denim. While it was profitable up until 2008, the company was recovering from the recession when poor decisions began to be made.
In a court declaration, Diesel’s Chief Restructuring Officer Mark Samson said, “prior management began employing a real estate strategy that involved substantial investments in its retail stores.” The company spent $90 million between 2008 and 2015, primarily on upgrading brick-and-mortar stores.
Additionally, Diesel fell victim to multiple circumstances of theft and fraud, which included internet scammers that sent false invoices that were paid out by the company. In total, Diesel attributes $1.2 million in losses to the scams.
Diesel’s turnaround strategy will see collaborations with more social media influencers and the relocation of some of its stores.
With such a small brick-and-mortar footprint in Canada, it’s possible that shoppers here might not feel an impact. However, only time will tell. We’ll keep you updated as news progresses.
Featured image: Diesel
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