As we’ve done in past years, we are keeping a watchful eye on the retail store closures and bankruptcies that affect the Canadian market. And the retail apocalypse has already claimed many victims in 2020. Hudson’s Bay has found itself in trouble as the retailer continues to close stores around the country. Published on Nov 16, 2020 6:02am. Business insolvencies for the 12 month period ending August 31, 2020, decreased by 18.9% compared with the 12 month period ending August 31, 2019. Bankruptcies went up fast, though there were periods where filings dropped for a few years. The retailer announced that it would “reduce its store footprint by up to 450 locations” in North America in order to lower its expenses and to “better align its business with the current operating environment.” And just a month after the original statement, the retailer announced that all 67 Canadian Pier 1 stores will be closing. In this report, we provide a detailed analysis of the data on insolvency filings available in Canada, situated in historical, geographic and sectorial contexts. The electronics brand attributed the closures to a “dramatic shift to online shopping in specific markets.”. Email Facebook Twitter LinkedIn. The filing came with news that the company allegedly had debts of over $12 billion. Excel Version . Data published Monthly by … After first opening in Canada in 2015 at Square One in Mississauga, NYX Cosmetics is officially closing all of its Canadians shops. Today’s Morning Brief is brought to you by Chartered Professional Accountants of Canada. Over the past few years, Canada has seen some many once-beloved stores shutter locations or shut down business for good. With assets of roughly $16.2 billion and liabilities of $11.8 billion, the filing represents the fourth-largest bankruptcy by assets so far in 2020, above that of Intelsat. Even though Muji said that this U.S. filing won’t affect its stores in Canada, only time will tell. As its parent company Regent plans to downsize the chain, La Senza will be closing 17 stores across the country. This suspension was planned to last until February 9th. While J.Crew has filed for Chapter 11 Bankruptcy, its online operations will remain open throughout the restructuring. In a press release, David Bensadoun, Chief Executive Officer of the company, said, “It is no secret that the retail industry has experienced rapid and significant change over the last several years. Even these huge companies and household names had a tough time surviving the pandemic. Another Canadian retailer Mendocino is closing its stores for good, as reported in July. By Mario Toneguzzi. That’s a drop of 1,627 fewer bankruptcies, or a 42% decrease. 453 KB, 9 pages. Office of the Superintendent of Bankruptcy Canada. While four locations across the world will stay open as they are reimagined, the tech company will be primarily operating online. This year has been a challenging one for retailers. We were making strong progress with the transformation of our business to tackle these challenges; however, the impact of the COVID-19 pandemic has put too much pressure on our business and our cash flows.” The brand’s filings revealed that not all of its 850 North American stores would reopen after the temporary closures and some will stay closed for good. If you earn over this limit, you are required to contribute half of that surplus income into your bankruptcy estate, and it is distributed to your creditors. Biggest Retail Bankruptcies Of 2020: A Complete List Of Bankrupt Retailers. The Canadian retail industry can expect a second 2020 wave of retail bankruptcies on the heels of the wave we saw in January and February, says a national retail expert. Carlton Cards & Papyrus will be closing all North American locations, totalling 78 Canadian locations and 178 locations in the U.S. With that being said, the closures aren’t all bad news — Carlton Cards and Papyrus will still be available at retail locations like Indigo, Sobey’s, and more. The World Needs a Christmas Miracle. Uncertainty, however, has been a hallmark of Covid-19 in 2020. The total number of insolvencies in August 2020 was 42.4% lower than the total number of insolvencies in August 2019. Please refer to the CCAA Records List for additional details. The biggest victim in the first half of 2020 was Chesapeake Energy, a shale giant that declared bankruptcy on June 28 with more than $9 billion in debt. Updated on 11/10/2020 at 3 p.m. ... filed for insolvency in Canada on April 27 and announced it’s ceasing operations in the country on May 11. by Jake Hardiman; December 24, 2020; 18 shares 18. The number of bankruptcies in Canada decreased to 178 companies companies in October 2020. The company also said that it anticipates that stores will reopen when it’s safe to do so, however, Canadian stores had already been dwindling prior to the government-mandated closures of non-essential businesses. The store which resides at 60 Bloor Street West has been in that same location for over 30 years now. The crisis like no other in 2020 leaves little room for Canadians to avert bankruptcies. However, on January 29th, AtlasGlobal returned its remaining aircraft (two Airbus A330-200s) to … 6. However, Starbucks is also testing new pickup-only locations that you may see pop-up around your neighbourhood. 2016 to 46% in 2020. Be the first to find out about the warehouse sales, sample sales, and pop-up sales that StyleDemocracy hosts. According to the latest numbers from Statistics Canada, Ontario's total insolvencies — a state whereby individuals or companies cannot pay their debts — fell 43.3 per … Quebec-based sporting goods retailer SAIL Outdoors Inc., which operates SAIL and Sportium has just filed for bankruptcy protection. At the time of the announcement, there were no confirmed number of store closings. 0. Bankruptcies decreased by 2.1% and proposals decreased by 2.5%. By iPolitics. Just last year, we said goodbye to household names like Home Outfitters and Payless to name a couple. The closures will affect 34 underperforming Lowe’s and Rona stores, with all listed stores expected to close by the end of February 2020. A massive number of companies have waved the white flag as COVID-19 wreaks havoc on not just retail, but other parts of the global economy — and 2021 is unlikely to be much better. The retail biz is getting tougher and tougher with competition heating up and the current COVID-19 pandemic that forced stores to close. • Texas accounted for 67% of the total producer filings in 2020, with 31 in total. The Japanese retailer, which specializes in home goods and organizational items, has taken a hit due to the COVID-19 pandemic. Throughout 2020 some of Canada’s most iconic companies have filed for creditor protection either using the Bankruptcy and Insolvency Act or the Companies’ Creditors Arrangement Act. In the 25 years from 1980 to 2005, personal bankruptcy filings rose significantly. The total number of insolvencies (bankruptcies and proposals) in Canada decreased by 2.4% in August 2020 compared to the previous month. However, the number of cases in Canada is far fewer than in the United States. Although the brand enjoyed popularity in the 90s and early 2000s, they were allegedly unable to keep up with changing fashion and retail trends. In this report, we provide a detailed analysis of the data on insolvency filings available in Canada, situated in historical, geographic and sectorial contexts. Our lawyers have played a key role assisting clients in high-profile E&P, midstream and oilfield services matters, including asset sales, refinancings, debt restructurings and Chapter 11 cases, representing debtors, creditors, energy lenders and private equity Monthly statistics for insolvency volumes for the month of January 2020. A look-back at the year 2020 reveals how fashion brands and retailers suffered due to dwindling sales, low footfall, high debts, high rentals, inefficient operations, out-dated merchandise assortment and high inventories, among other issues. Main Menu. Three of the casino bankruptcies came during the recession of the early 1990s and the Gulf War, both of which contributed to hard times in Atlantic City, New Jersey's gambling facilities. In January 2020, the retailer announced that it planned on closing all five of its Canadian locations. Bryan Thomas | Getty Images The New York apparel company filed for bankruptcy on May 4 … 2020 has been a hectic year for retail bankruptcies. Bankruptcies in Canada averaged 364.12 Companies from 2004 until 2020, reaching an all time high of 872 Companies in March of 2004 and a record low of 108 Companies in April of 2020. Contact a Local + Licensed Trustee . By Steven John. Iconic Montreal retailer Le Chateau filed for bankruptcy in October, after 60 years in business. The number of Alberta business bankruptcies in November 2020 increased by 50.0% from the same period a year ago, from 10 to 15. “We believe that this is the only course of action to ensure we remain successful in the future.”. The breakneck pace of retail bankruptcies slowed in August, with at least three well-known companies filing for Chapter 11. PDF Version. With the temporary closure of all 30 Henry’s stores due to COVID-19, the retailer has seen a large impact on its sales. The coronavirus pandemic has wreaked havoc on businesses of all types, but few establishments have suffered more than restaurants. The company has not confirmed which locations will be closing. Uncertainty, however, has been a hallmark of Covid-19 in 2020. The popular coffee chain plans to close 200 stores across Canada over the span of the next two years. 2019 and 2020 closings: 3 This seafood restaurant chain, which first opened in Houston in 1991, shrank by over a third when 41 locations abruptly went out of business in 2017. Consumer insolvencies for the 12 month period ending August 31, 2020, decreased by 14.7% compared with the 12 month period ending August 31, 2019. Read the report Insolvency Statistics in Canada—August 2020. J.Crew filed for Chapter 11 Bankruptcy in May 2020, marking one of the first major retailers to do so since the coronavirus outbreak. You just need to scroll up this list of 2020 airline bankruptcies to find a few examples (Avianca Perú, Germanwings, South African Express, Air Asia Japan, etc.). Bankruptcies decreased by 2.1% and proposals decreased by 2.5%. McMillan is counsel to the applicant. Sadly, the brand has decided that it will be closing all of its stores in Canada. Like what you’re reading? By using our site, you agree to the. On a positive note, the company launched an online shopping platform, which did not exist before COVID-19. Consumer bankruptcies decreased by 25.0%, while consumer proposals decreased by 7.6%. The coronavirus pandemic added to the woes of these already troubled retailers leading them to file for Chapter 11 bankruptcy protection. 2020 has been unusual for bankruptcy filings, which can be directly attributed to the effects of the pandemic and the federal government’s stimulus response. Bankruptcies in Canada increased to 188 Companies in September from 138 Companies in August of 2020. February 10, 2020, 12:52 PM EST Updated on February 10, 2020, 2:02 PM EST 2:45. Morning Brief: Bankruptcies on the rise. Note: The Insolvency Statistics in Canada reports, which pertain to bankruptcies and proposals filed under the Bankruptcy and Insolvency Act, do not include CCAA filings. Visit us for updates on the very best shopping events and news on all things fashion, beauty, retail, and lifestyle. Markets Remain Unsettled. Global News reports that Lucky brand will close 13 of the 200 stores it operates, but that number could go up. August 5, 2020. At the beginning of the year, a third-quarter fiscal report for Pier 1 Imports revealed that overall sales were down at the home retailer. Bankruptcies in Canada averaged 362.22 Companies from 2004 until 2020, reaching an all time high of 872 Companies in March of 2004 and a record low of 108 Companies in April of 2020. Lole: Montreal-based athleisure brand Lole, considered to be a competitor with Lululemon, which filed for bankruptcy protection in May and shut its corporate stores in Canada and globally (franchised locations are still open according to a former store manager). In May 2020, Reitmans filed for creditor protection. 2020 had the lowest number in bankruptcy filings since 1986 with a total of 529,068 filings across all chapters. But, whatever the cause of the decline, bankruptcies still seem likely to rise if unemployment and loss of income persist. Overall rating: 5 out of 5 based on 2 reviews. The previous year saw a number of well-known national and regional retailers file for both Chapter 7 and Chapter 11 bankruptcy. Statistics Canada reports that Canadians’ debt to disposable income ratio slid 152% between April and June versus the 175.4% reading in the first quarter of 2020… By Dawn Geske 12/25/20 AT 1:00 PM. The proportion of proposals in consumer insolvencies increased to 63.9% during the 12 month period ending August 31, 2020, up from 58.9% during the 12 month period ending August 31, 2019. Home; About; Listing; Services; Contact Us; Register; recent canadian bankruptcies 2020 Our lawyers have played a key role assisting clients in high-profile E&P, midstream and oilfield services matters, including asset sales, refinancings, debt restructurings and Chapter 11 cases, representing debtors, creditors, energy lenders and private equity investors. © Copyright STYLEDEMOCRACY 2017- 2021. • 2020 saw an increase in billion-dollar bankruptcies. Ascena Retail Group, the owner of Ann Taylor, officially filed for Chapter 11 bankruptcy in July. In an effort to restructure, stores across the U.S, Canada, Puerto Rico, and Mexico will close. The federal department announced the approval on Wednesday after completing a review of the company’s clinical trial data. Montreal-based ALDO, the parent company of GLOBO, Aldo Shoes, and Call It Spring, obtained creditor protection in May 2020. And he expects the number of merely large bankruptcies … Unfortunately, in December 2020, citing the pandemic, the company filed for bankruptcy. London, Ontario (PRWEB) September 21, 2020 -- According to the Office of the Superintendent of Bankruptcy Canada, in April 2020 bankruptcies were down nearly LONDON, Ontario (PRWEB) September 21, 2020 According to the Office of the Superintendent of Bankruptcy Canada, in April 2020 bankruptcies were down nearly 36 percent from the previous year. StyleDemocracy is North America's number one source for the latest warehouse sales, pop-up shops, and sample sales happening in your city. The pandemic recession plunged dozens of large American companies into bankruptcy this summer. A J. The maximum level was 872 companies and minimum was 108 companies. Air Canada is not in unfamiliar territory, because the company filed for bankruptcy protection in 2003. 2016 to 46% in 2020. Menu. Get details about StyleDemocracy hosted events, as well as sales hosted by our trusted partners. Pandemic Bankruptcies So Far. Unfortunately, the Yorkville space is following in the footsteps of the Pink Tartan Bayview Village location that closed several months ago. ... 2020 At 9:50 pm. At the end of January 2020, Freemark Apparel Brands, the company that has the rights to sell Bench merchandise in Canada, announced that it would be closing all of its Bench stores to focus on e-commerce and wholesale clients. In October, the iconic department store faced lawsuits over $3.5 million in unpaid rent from the landlords of five locations in Quebec. Vegan fast-casual restaurant By CHLOE opened its first location in New York City in 2015, and within a few years, had multiple locations in the U.S, plus five in London and one in Canada. Throughout 2020 some of Canada’s most iconic companies have filed for creditor protection either using the Bankruptcy and Insolvency Act or the Companies’ Creditors Arrangement Act. Delaware was the second most popular jurisdiction with six filings in 2020. At the end of January 2020, Freemark Apparel Brands, the company that has the rights to sell Bench merchandise in Canada, announced that it would be closing all of its Bench stores to focus on e-commerce and wholesale clients. Insolvency Statistics in Canada January 2020. Yet the number of bankruptcies of individuals and small and medium-sized businesses has plummeted since the pandemic was declared earlier this year. Lole’s filings indicated that the company has about $47 million in debt. The biggest victim in the first half of 2020 was Chesapeake Energy, a shale giant that declared bankruptcy on June 28 with more than $9 billion in debt. Health Canada has approved Moderna’s COVID-19 vaccine for use in this country, clearing the way for thousands of doses to arrive by month’s end. Reply. Chris Fournier. Updated 2020. Popular retail brand Gap has announced that they plan to close a number of stores across Canada to focus on its e-commerce store, as well as elevating the stores that remain open. Start receiving our newsletters ASAP, for the trending retail news you don’t want to miss! 5 minute read; Advertisement: The coronavirus pandemic has dominated the news this year, changing the very essence of life as we know it. Notably, Ascena also owns Lane Bryant, LOFT, Lou & Grey, and Justice. The brand plans to continue operations and allegedly has plans to sell the company to the owner of Aéropostale and Nautica. The 10 biggest retail bankruptcies of 2020 This year, Neiman Marcus and J.C. Penney joined the ranks of some of the biggest retail bankruptcies on record, including Sears, Toys R Us and Circuit City. Insolvency Statistics in Canada (open data) Tables. However, people with investment income from the Toronto Dominion Bank … Companies such Le Chateau Inc. The previous year saw a number of well-known national and regional retailers file for both Chapter 7 and Chapter 11 bankruptcy. Stay in the know and get updates on retail news, contests, fashion, style, and more straight to your inbox. For the 12 month period ending August 31, 2020, consumer insolvency filings accounted for 97.4% of total insolvency filings. Health Canada approves Moderna COVID-19 vaccine. With a shift in the market towards body positivity, controversial comments, and increasing competition in the lingerie space, the brand has struggled to appeal to its once-loyal customer base. On businesses of all types, but few establishments have suffered more than restaurants montreal-based ALDO, bankruptcy. Unusual as this might seem, this trend is evident throughout the restructuring doors at the of! 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