While several stores have taken shelter from their creditors since the start of the pandemic, it is now the turn of Garage and Dynamite stores to be in serious financial difficulty . Although the total amount of debts is not known, the two shops, which are affiliated, have in turn taken shelter from creditors.
According to La Presse , the Montreal retailer wants to restructure in order to quickly correct its business model in order to facilitate online shopping, which has been growing for six months.
“This pandemic has created a tsunami for businesses. […] Our digital channels have experienced incredible growth over the past six months, but unfortunately this is not enough to compensate for the deserted city centers and the changing consumer needs caused by teleworking policies ”, mentions in a press release Andrew Lufty, executive chairman of Groupe Dynamite.
The company has more than 6,000 employees and 350 stores .
The Garage and Dynamite stores are therefore in the same boat as several Quebec companies who have also had to protect themselves from creditors, including Frank And Oak, SAIL, Lolë, Aldo, Reitmans and Victoria's Secret.