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Canadian Retailer DavidsTea is Closing the Vast Majority of its Stores in Canada and the U.S.

Following months of financial troubles and a renewed focus on online shopping, DavidsTea, a Canadian retailer, is closing most of its stores in Canada and all of its U.S. locations. Their 166 stores will permanently shut their doors, and only 18 DavidsTea locations in Canada will reopen. All 42 locations U.S., will be shuttered.

On Thursday, the sweeping closures announced more than doubles the 82 store closures announced earlier this month. The company said in a statement that the new retail landscape had forced them to re-evaluate how they can bring tea to their fans most efficiently, and while they believe in the need for evolution, a change could be hard.

Earlier this month, the speciality tea company stated that it would move its business online and “significantly reduce” several stores at the same time restructuring under the Companies’ Creditors Arrangement Act, the Canadian law that covers insolvent companies. DavidsTea gradually expanded to malls and standalone locations across Canada after it was founded in Montreal in 2008.

The company failed to pay rent on stores in April, May, and June, after the pandemic forced stores to close on March 17. After years of challenges for DavidsTea, they now want to shift away from brick-and-mortar businesses. The company reported last month that it lost $23.2 million on $146.5 million in revenues. The losses comprise of US$4.3 million lost in its fiscal fourth quarter on US$54.8 million of incomes.

Source: https://www.ctvnews.ca/business/davidstea-only-reopening-18-stores-as-it-shuts-down-166-canadian-locations-1.5046491

About the author

Stewart Muir

Stewart Muir

Stewart Muir is an experienced reporter in the field of nature, natural resources and arts. His hobby is watercolor painting and both professional and hobby-wise he is an expert.

He can be reached out at: muir.stewart@blog.ca

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