(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

Splatsin Elder struggles to stop tubers from accessing his private property

Nathan Kinbasket has a certificate of possession on the area

First degree murder charges for North Okanagan woman

59-year-old woman charged in Round Lake suspicious death incident

Dr. Henry art opens Lumby exhibit

Paper mache creation greets guests at Beyond the Mask show

New Lake Country fire hall breaks ground

Groundwork is on tap for a new community firehall. Site works are… Continue reading

B.C. records 146 new COVID-19 cases through long weekend

More that 28 people tested positive for the virus each day since Friday

Alberta to require masks at schools this fall, but still no mandate in B.C.

B.C. students are also set to return to classrooms in September

UPDATE: Water bombers attack wildfire north of Sicamous above Shuswap Lake

Wildfire BC reports fire is still classified out of control, 25 personnel on ground

B.C. to allow customers to buy cannabis online for in-store pickup at private shops

Age verification will still be required inside the store

Interior Health expands COVID-19 testing access in Kelowna

First-come, first-serve, no-appointment-needed testing centre opens in downtown Kelowna

Shuswap pet nutritionist and raw diet advocate to be in national magazine

Sicamous’s Deanna Larocque building reputation for canine support

Two people die in outdoor shower, in Tulameen

Couple was attending a long weekend gathering

UPDATE: More personnel at Dry Lake fire, 43 properties remain under evacuation alert

Wildfire has been burning out of control north of Princeton for three days

Most Read