Ricki’s and Cleo Closing, Bootlegger Restructuring
The Canadian retail landscape is shifting as Comark Holdings Inc., the parent company of Ricki’s, Cleo, and Bootlegger, announced major changes to its operations. The Vancouver-based company has filed for creditor protection, citing financial struggles exacerbated by the pandemic, supply chain issues, and increasing competition from low-cost retailers like Shein and Temu.
Ricki’s and Cleo Stores to Close Permanently
Comark plans to close all Ricki’s and Cleo stores across Canada, ending operations for two women’s apparel brands known for office-friendly attire. The company currently operates 75 Ricki’s locations, 54 Cleo locations, and 20 combined stores featuring both brands. A court order for full liquidation of these stores will be sought in the coming weeks.
The closures impact over 2,000 employees, leaving many uncertain about their future. Despite the closures, storefronts will remain open temporarily during the liquidation process.
Bootlegger Faces Restructuring
Unlike Ricki’s and Cleo, Bootlegger will undergo restructuring to reduce its retail footprint. The company aims to streamline operations and adapt to evolving consumer preferences. This approach reflects efforts to preserve the brand while addressing the financial strain caused by slow post-holiday sales and mounting vendor disputes.
Frank and Oak Also Seeks Creditor Protection
Montreal-based Frank and Oak, owned by UCG Canada Holdings Inc., is following a similar path. The company, known for its sustainable fashion, owes $71 million to creditors and is exploring potential buyers or investors. CEO Dustin Jones attributed these challenges to lingering effects of the pandemic and changing market dynamics.
Retail Industry Shifts Amid Rising Competition
The retail industry’s struggles are not isolated. Other brands like Toys “R” Us Canada and The Body Shop Canada are also adjusting their strategies. Toys “R” Us has announced the closure of five Ontario locations, while The Body Shop plans a potential sale to a new owner.
Despite these closures, retail experts suggest the industry isn’t in a downturn but evolving. “Consumers are being more intentional with their purchases,” said Liza Amlani, co-founder of the Retail Strategy Group. She noted that the abundance of online and offline shopping options gives customers greater choice than ever.
Looking Ahead
As Canadian retailers like Comark and Frank and Oak navigate financial challenges, their futures remain uncertain. These changes reflect broader trends in consumer behaviour and the need for companies to adapt to a competitive market. The retail landscape will continue to evolve, driven by shifts in demand and operational strategies.
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