Canadian independent tableware and kitchenware retailer Stokes has initiated a restructuring process to secure future growth and profitability.
The proceedings were initiated under the Companies’ Creditors Arrangement Act (CCAA).
Stokes said: “The difficult but necessary decision was made to facilitate the implementation of the company’s strategy, which will secure its long-term viability in the best interests of its employees, customers and suppliers.”
Founded in 1935, Stokes is facing challenges due to fundamental changes in the industry and a deteriorating macroeconomic environment.
The company will focus on improving 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 retail locations while maintaining profitable locations in Québec and Ontario, in addition to its headquarters in Montréal, Québec.
The company operates a network of 95 stores across Canada.
The restructuring process is expected to allow Stokes to retain around 500 jobs.
During this transition, Stokes strives to uphold its commitment to providing exceptional customer service without interruption.
Meanwhile, the retailer’s management team expresses confidence that the restructuring will position Stokes as a more competitive entity within the retail sector.
To facilitate this process, the retailer has appointed Ernst & Young as CCAA monitor, while FAAN Advisors Group will act as Chief Restructuring Officer.
Legal advice for the company is provided by Osler, Hoskin & Harcourt.
“Stokes to close its less profitable stores amid a restructuring process” was originally created and published by Retail Insight Network, a brand owned by GlobalData.
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