(The Canadian Press)

DavidsTea to shrink network to 18 stores in Canada after renegotiating leases

Move comes after DavidsTea closed 82 other stores in Canada and all 42 of its stores in the U.S.

DavidsTea Inc. will shrink its retail store network to 18 Canadian locations as the insolvent beverage chain shutters 82 more stores in the country while dealing with the impact of COVID-19.

The Montreal-based company says it is sending out lease termination notices for the stores and expects them to be wound down within the next 30 days.

The move comes after DavidsTea closed 82 other stores in Canada and all 42 of its stores in the U.S. in early July to focus on its e-commerce business and supplying grocery stores and pharmacies.

The company said at the time that it would seek more favourable lease terms for the remaining 100 stores in Canada and may permanently shut additional locations if landlords are unwilling to negotiate suitable leases.

DavidsTea now says it was able to secure new, more favourable lease terms and conditions for 18 of its locations, which will reopen.

The company has obtained creditor protection under the Companies Creditors Arrangement Act (CCAA) warned in mid-June that it could begin a formal restructuring depending on the outcome of its talks with landlords, who hadn’t received rent from David’s Tea for April, May and June.

“We believe that a select group of our best-performing stores, complementing our growing online and wholesale business model and supported by an entrepreneurial organization, will enhance DavidsTea’s ability to emerge from the CCAA restructuring process as a more sustainable and resilient organization,” stated company founder, chairman and interim CEO Herschel Segal.

The 18 stores are located in major shopping malls. Seven are in Quebec, five in Ontario and the rest in Alberta, British Columbia, Manitoba and New Brunswick.

“Our decision to reopen these select stores is consistent with our objective to create a leaner, more efficient company, positioned for long-term growth.”

The Canadian Press

Like us on Facebook and follow us on Twitter.

Want to support local journalism? Make a donation here.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Former Summerlander receives Emmy nomination for makeup work

Lucky Bromhead recognized for her work with Canadian sitcom Schitt’s Creek

Health care priorities debated following surprise funding announcement

Surprise provincial funding stirs debate on local health care priorities during regional meeting

Morning Start: High heels were first designed for men

Your morning start for Monday, Aug. 10, 2020

QUIZ: Do you know the truth?

In what has been described as a post-truth era, how much do you know about truth and lies?

EDITORIAL: Managing wildfires

Wildfires have the potential to cause significant damage within our province

B.C. records 30-50 new COVID-19 cases a day over weekend, no new deaths

Many of those testing positive were identified by contact tracing for being linked to other confirmed infections

Five B.C. First Nations call out Canada for ‘discriminatory’ food fish practices

West Coast nations say government ignoring court-won right to chinook and coho

No new COVID-19 cases in Kelowna over the weekend

Kelowna has nine of the Interior Health region’s 13 active cases

Rent-relief program becomes new front in fight between Liberals, opposition

Opposition trying to draw parallels between decision to have Canada Mortgage and Housing Corp. run program and the WE controversy

West Kelowna woman upset with RCMP response to street brawl

A physical altercation between a group of teens and a group of adults erupted on a West Kelowna street Sunday evening

Kelowna real estate agent fined $6,500 for ‘misleading’ website

The website listed several services its owner was not licensed to provide

Ottawa sets minimum unemployment rate at 13.1% for EI calculation

Statistics Canada says the unemployment rate was 10.9 per cent in July

$45K in donations received after couple’s sudden death in Tulameen

Sarah MacDermid, 31, and Casey Bussiere, 37, died August long weekend

Most Read