DAVIDsTEA transitioning to online retailer
DAVIDsTEA will be closing its stores... sort of.
The popular tea store has announced it is restructuring under the Companies' Creditors Arrangement Act (CCAA), in order to transition to an online retailer and wholesaler of tea products.
The Montreal-based company will also be filing for similar orders for its U.S. subsidiary under Chapter 15 of the United States Bankruptcy Code.
During this restructuring process, those craving a DAVIDsTEA will still be able to purchase products online via the company's website.
Additionally, DAVIDsTEA will continue to operate its wholesale distribution, meaning customers will be able to purchase their products in grocery stores and pharmacies across Canada.
The decision comes after the company faced significant challenges due to the pandemic, which has had a similar impact on many retailers.
"As we indicated before, our challenge is to restructure our North American retail footprint in order to decrease the ongoing losses caused by unprofitable stores," Herschel Segal, Founder, Chairman and Interim CEO of DAVIDsTEA, said in a news release.
"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," he continued.
Cover photo courtesy of Neve McBride via Instagram
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