Bargain fashion chain announces closure of all 221 stores in Canada
A beloved discount fashion retailer has announced the closure of all 221 stores in Canada.
The Ricki’s and Cleo brands, owned by parent company Comark Holdings, will close all of their combined 221 stores.
Comark Holdings filed for bankruptcy in June 2020, blaming the disruption caused by the Covid-19 pandemic.
It closed 30 of its then-underperforming locations, according to a Canadian news source Insauga reported this.
The company is not yet bankrupt and the closure of the remaining locations is part of a proceeding ordered by the Ontario Superior Court of Justice.
“After careful consideration of all reasonably available options, the Company has determined that it is in the best interests of its stakeholders to wind down its Ricki’s and Cleo operations and close all Ricki’s and Cleo store locations,” Comark said in a press release. announcing the closures.
The company, whose stores are located in malls and major energy centers, continued to struggle after pandemic restrictions were lifted, according to court filings.
In 2021, it was hit by a cyber attack that compromised its internal system and inventory.
Ricki’s opened its first location in Winnipeg in 1939 and is now closing all of its locations
The increase in the number of low-cost fast fashion retailers in recent years has also created a tougher market for the company’s brands.
Comark said it plans to seek a new court order to fully liquidate all Ricki’s and Cleo stores, but that they will remain open during the process.
Some Bootlegger stores, which are also owned by the company, will also be liquidated.
The company’s approximately 200 stores are located across Canada, including in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, New Brunswick, Nova Scotia and Newfoundland and Labrador.
The stores together have more than 2,000 employees who are likely to be affected, Insauga reported.
Ricki’s opened its first location in Winnipeg in 1939.
The closures mark a grim start for North American retailers after 7,344 stores closed in 2024, according to Coresight data.
The most recent major retail bankruptcy was Container Store, which filed for Chapter 11 protection on December 22.
A red dress sold by Rickie’s, the beloved fashion retailer that faced stiff competition in the years after the pandemic
Party City will immediately close all its stores after almost forty years in business
Earlier that month, Big Lots said it would suspend sales at all its U.S. stores after filing for bankruptcy in September.
The company initially said it would close all of its 963 remaining locations after a sale to a private equity firm fell through, but has since found an investor to keep between 200 and 400 open.
Meanwhile, after nearly four decades as an American retail institution, Party City announced last week that it would close all of its 850 stores in the coming weeks.
US department store Macy’s also announced it would close 65 locations across the country before the end of January.