Wednesday 11th November 2015
by lajosStephen Reitman on Tuesday said he was quite possibly having the most difficult day of his long career. The fashion empire his grandparents started in Montreal 94 years ago appeared in a Quebec court seeking protection from creditors, shackled by months of unpaid bills that have piled up during the coronavirus shutdown.pandemic has just knocked the heck out of us, the chief executive of Reitmans Canada Ltd. Said in a phone interview.Quebec Superior Court on Tuesday granted an interim order, starting the process under the Companies Creditors Arrangement Act (CCAA) that will allow Reitmans to chart a new course for its foundering business in consultations with its creditors, mostly suppliers and landlords for each of the retailer 576 leased storefronts, none of which have been paid rent in two months, according to the company court filing.The Reitmans board of directors unanimously decided that creditor protection was the safest way forward for the fashion chain, which has found itself at the edge of financial ruin after the economic shutdown forced it to shutter its stores.Reitmans has temporarily laid off 90 per cent of its 5,600 store employees, and 30 per cent of its roughly 1,000 head office employees.
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