Independent Canadian tableware and kitchenware retailer Stokes has begun a restructuring process aimed at securing its future growth and profitability.
The proceedings were initiated under the Corporate Creditors’ Arrangement Act (CCAA).
Stokes said: “A difficult but necessary decision was made to facilitate the implementation of a company strategy that will ensure its long-term viability for the benefit of its employees, customers and suppliers.”
Stokes, founded in 1935, is facing challenges caused by fundamental industrial changes and the downturn in the macroeconomic environment.
The company will focus on developing its digital capabilities and expanding its e-commerce platform to better compete in today’s retail market.
As part of the CCAA proceedings, Stokes will seek court approval to close underperforming stores while maintaining its profitable stores in Quebec and Ontario, near its head office in Montréal, Quebec.
The company operates a network of 95 stores across Canada.
The restructuring process is expected to allow Stokes to save around 500 jobs.
Throughout this transition, Stokes aims to uphold its commitment to delivering exceptional customer service without interruption.
Meanwhile, the retailer’s management team is confident that the restructuring will position Stokes as a more competitive business within the retail sector.
To facilitate the process, the seller has appointed Ernst & Young as the CCAA custodian, while FAAN Advisors Group will act as the chief restructuring officer.
The company’s legal counsel is provided by Osler, Hoskin & Harcourt.
“Stokes to close its less profitable stores in a restructuring plan” was originally developed and published by Retail Insight Network, a product owned by GlobalData.
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