The retail biz is getting tougher and tougher with competition heating up and the current COVID-19 pandemic that forced stores to close. Quebec-based sporting goods retailer SAIL Outdoors Inc., which operates SAIL and Sportium has just filed for bankruptcy protection.
Retail-Insider reports that the company’s total debt exceeds $100 million, according to its filings.
The company filed for protection under the Bankruptcy and Insolvency Act and said that this will allow it to obtain support while it implements a restructuring plan.
“For several years now, the retail industry has been undergoing a major transformation characterized, among other things, by an increase in online sales and heightened competition,” said Norman Décarie, President and Chief Executive Officer of SAIL Outdoors Inc.
“Unfortunately, the consequences of the pandemic, such as the closure of stores for two months, have added further pressure on our cash flow and financial health. This situation is forcing us to make major decisions to ensure the company’s sustainability.”
As of yet, no store closures have been announced.
SAIL operates 14 stores with eight of those locations in Quebec and six in Ontario while Sportium has four stores in Quebec.
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