COVID-19 appears to have claimed another victim in the Canadian retail space as DavidsTea announces plans to file for creditor protection under the Companies’ Creditors Arrangement Act (CCAA) as it restructures.
The Quebec-based tea chain plans to significantly reduce its brick and mortar footprint as it transitions to online retailing and wholesale distribution in North America.
During the restructuring process, DAVIDsTEA will continue to operate its online business through its e-commerce platform at davidstea.com and its wholesale distribution channel, through which it sells a selection of DAVIDsTEA products in grocery stores and pharmacies across Canada.
DavidsTea’s operates more than 230 stores across Canada and the United States, most of which will likely close as part of the company’s restructuring plans.
“I sincerely regret the impact the restructuring of our business will have on some of our exceptional and passionate employees. This has been an incredibly difficult decision to take, but a necessary one to ensure the long-term viability of our Company. I would like to sincerely thank our impacted employees for their contributions and for their passion for our brand through the years,” Herschel Segal, the brand’s founder, chairman and interim CEO said in a statement on Wednesday.
