KAWARTHA LAKES-The company that owns Ricki’s, Cleo and Bootlegger has announced it has entered bankruptcy.
“After careful consideration of all reasonably available options, the Company has determined that it is in the best interests of its stakeholders to wind down its Ricki’s and Cleo operations and to close all Ricki’s and cleo retail store locations. The Company will continue to explore opportunities with respect to Bootlegger through the CCAA process, which will include reducing its retail footprint to better position the Company in today’s retail environment.” said the company in a statement.
Comark Holdings Inc., has commenced proceedings under the Companies’ Creditors Arrangement Act. The Company intends to seek a Court order approving the full liquidation of all Ricki’s and cleo and certain Bootlegger stores. The stores will remain open during this process.
The Company currently has 221 stores in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, New Brunswick, Nova Scotia, and Newfoundland and Labrador.
Experts say a number of factors contributed to the downfall. The pandemic which led to lengthy store closures, a 2021 ransomware attack disrupted operations during an important holiday sales period, resulting in an $8.2 million revenue loss and global supply chain issues caused were major factors.
The stores in Lindsay and Peterborough are slated for closure. Customers have until the end of day on January 16th to use gift cards and make returns or exchanges. The stores will remain open for clearance sales. At least eight staff in Lindsay will be without a job. It’s unclear how many staff at the Peterborough locations will be out of work.
