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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Earlier this month, we reported that things looked grim for Payless ShoeSource.
Inside sources hinted that the discount footwear retailer was making plans for its second trip to bankruptcy court and reportedly discussing plans to close a massive amount of stores. Now it seems as if those inside sources were right.
In a recent press release, Payless announced that it would be closing all of its Canadian stores.
Over the years, the company saw many ups and downs. In 2017, Payless ShoeSource filed for Chapter 11 bankruptcy. The company had plans to restructure all of its North American stores and two of its Hong Kong-based entities, while immediately shuttering 400 underperforming locations in the U.S. and Puerto Rico. With the help of lenders, Payless was able to exit bankruptcy, but not without shuttering stores and cutting jobs at its headquarters.
Despite the reorganization, Payless has been unable to keep up. The company cites “too much remaining debt, too large a store footprint and a yet-to-be realized systems and corporate overhead structure consolidation,” as the factors leading to its demise.
Payless will close 248 stores across Canada.
Retail Insider notes that about 2,400 workers will lose their jobs due to the closures. In addition, Payless is also closing all of its American stores and is also winding down its online operations.
While Payless Canada seeks creditor protection pursuant to the CCAA in the Ontario Superior Court of Justice, liquidation has already begun at some of the stores. As of right now, the retailer has discontinued its reward program and outstanding merchandise coupons. Store credits will be honoured until March 11, 2019, and returns and exchanges on products purchased before February 17, 2019 will be allowed until March 1, 2019.
While North American operations are coming to an end, Payless will continue to operate in Latin America — so, who knows? We might see them emerge as one of the retailers that make a comeback in Canada some day. Until then, stay tuned for a #SaleSpy.
Featured image: Square One
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After shuttering stores and an impressive marketing stunt that had the internet talking, it seems like a certain discount shoe retailer is still struggling.
Back in 2017, Payless ShoeSource filed for Chapter 11 bankruptcy. The company had plans to restructure all of its North American stores and two of its Hong Kong-based entities, while immediately shuttering 400 underperforming locations in the U.S. and Puerto Rico.
With help from lenders, Payless was able to exit bankruptcy later in 2017, but not without closing stores and cutting jobs at its headquarters.
Instagram/@paylesssuperstore400
And now a report says that Payless might be preparing for a second bankruptcy.
In January of this year, Payless hired investment firm PJ Solomon to look into “strategic alternatives,” which included a sale, restructuring, or bankruptcy filing.
According to Bloomberg, the discount footwear retailer is now allegedly making plans for its second trip to bankruptcy court. The company is reportedly seeking a loan and discussing plans to close a massive amount of stores — potentially all North American stores.
Bloomberg spoke with unnamed sources who are not authorized to speak publicly.
Instagram/@patiginzo
While Canada has seen a number of retailers shut down over the past few years, things look much worse in the United States.
If Bloomberg’s unnamed sources are correct, Payless could join the latest wave of retail bankruptcies that includes Toys “R” Us (which was saved in Canada), Gymboree, Shopko, and Charlotte Russe, to name a few.
Despite spending 2018 much leaner and testing new concepts like holiday pop-up stores and headline-grabbing marketing tactics, Payless has been unable to increase sales enough to the point of comfort.
In August 2018 at the end of the fiscal quarter, Payless’ sales missed its target by $26 million. While in-store sales rose 3.3%, the discount footwear retailer saw reduced foot traffic across North America overall and fell way below its projected 9.9% increase.
Payless has kept mum on the subject so far.
Requests to comment from Bloomberg and Retail Dive have been declined.
As it stands, according to its website, Payless operates about 3,600 outlets worldwide, with 2,700 in North America. If reports about the company allegedly shuttering stores across North America are true, this could be an issue for landlords and employees across Canada.
We will keep you updated as more news becomes available.
Featured image: Instagram/@payless
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Discount store Payless ShoeSource completely fooled social media influencers into spending hundreds of dollars on $20 shoes at their latest pop-up shop.
The brand created a fake label under the name “Palessi” and invited fashion experts to be there for the elaborate “grand opening,” which took place in a former Armani store in Santa Monica, California.
Little did they know, it was all just a publicity stunt.
The low-budget company put its normal shoes out on display, and dramatically marked up the prices to see if anyone would notice. Surprisingly, they didn’t.
Facebook/Payless ShoeSource
Influencers were extremely enthusiastic about the new “brand,” as seen in this video shared by the company on Facebook. Comments like, “they’re elegant, sophisticated,” and “I could tell it was made from high-quality material,” were heard coming from two of the shoppers, and others shared the same sentiment.
Payless successfully tricked social media influencers into paying as much as $640 USD for their footwear, which is typically priced at $39.99.
The retailer “wanted to push the social experiment genre to new extremes, while simultaneously using it to make a cultural statement,” said Doug Cameron, DCX Growth Accelerator’s chief creative officer in Adweek. “Payless customers share a pragmatist point of view, and we thought it would be provocative to use this ideology to challenge today’s image-conscious fashion influencer culture.”
Facebook/Payless ShoeSource
Palessi managed to get up to $3,000 before revealing the truth to shoppers.
Their reactions when they found out are also caught on camera, and it’s priceless! In the end, they gave everyone their money back, and influencers got to bring home their favourite pair of shoes. It worked out well for both parties.
Payless CMO Sarah Couch says the chain aimed to tackle the brand’s perception issues head-on at a time when retailers are feeling more heat than ever from giant e-commerce sites.
Facebook/Payless ShoeSource
The campaign is an amazing comeback and publicity stunt for Payless.
Back in 2017, the budget shoe company filed for Chapter 11 bankruptcy. While the majority of Canadian stores were, for the most part, unaffected by the filing, the United States and Puerto Rico saw nearly 400 store locations close down.
Today, Payless ShoeSource is one of the largest retail chains who have been able to pull themselves out of bankruptcy. They’ve cleaned up their balance sheet and will be focusing on their brick and mortar stores. And it looks like they’re coming back with a bang!
Featured Image: Facebook/Payless ShoeSource
Earlier this year, rumours of trouble for Payless began circulating, with Bloomberg noting that the affordable family footwear retailer was looking to restructure due to massive amounts of debt and may have to close up to 1000 stores. And now, the company has filed for Chapter 11 bankruptcy.
In a press release, Payless called the move a “Path forward to enhance [the] company’s growth profile and profitability.” The restructuring includes all of Payless’ North American entities and two Hong Kong-based entities. The retailer plans on immediately closing nearly 400 underperforming locations in the U.S and Puerto Rico. There have been no announcements on closures for Canadian stores yet, though Payless’ restructuring plan does include expanding in areas they believe will provide sustainable growth, like Latin America.
Payless plans on providing a list of all the locations that are closing, which you can view here.
Are you surprised by the Payless bankruptcy? Let us know in the comment section.
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In the mood for a little retail therapy? Us too! From buy one, get one free sales to an extra discount off, these sales have got it going on. And if you’re a shoe lover, there are tons of sales for you to get your fix. Get your spring wardrobe ready!
Forever 21
Raise your hand if you like free stuff! Now, listen to this: Forever 21 is hosting a BOGO sale, where you can buy one clearance item and get the second clearance item for free. Pretty awesome deal, right? Featured in the sale is swimwear, outerwear, footwear, tops and more, with plenty of items under 5 bucks, too. The sale runs until April 2nd, so hurry over to the website before all the good stuff gets scooped up! Just use the promotion code, “BOGOFREE”. Shop the sale here.
Hudson’s Bay
It pays to be friends with Hudson’s Bay! From now until April 2nd, Hudson’s Bay is taking an extra 15% off everything online with the promotion code, “FRIENDS”. However, if you’re a Hudson’s Bay credit card holder, you can save an extra 25% on shoes and an extra 20% on everything else. Shop the sale here.
GUESS
Two BOGO sales, one weekend. Does it get any better than this? GUESS is hosting a BOGO accessory sale, and shoes, handbags and accessories are all buy one, get one 50% off. Plus, they’re offering select clothing styles for men and women at up to 50% off. Shop the sale here. Or, if you’re looking for even bigger discounts, check out the GUESS factory store and take up to 60% off everything.
Under Armour
Calling all athletes! Under Armour is taking up to 25% off select footwear for men, women and children. Get the whole family geared up for the gym or your next activity. Shop the sale here.
Payless
It may not look like spring, but we swear, sunny days are coming! Gear up for warmer weather at Payless. Right now, they’re hosting a spring shoe sale, with styles of footwear and handbags starting as low as $19.99. Plus for a limited time, take an extra 15% off your entire purchase with the promotion code, “ZZSMILES”. Shop the sale here.
Did we miss any of the best sales happening this weekend? Let us know in the comment section.
Featured Image: Instagram/@themarcystop
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