Comark Holdings Inc., the Vancouver-based parent company of Canadian retail chains Ricki’s, Cleo, and Bootlegger, has announced plans to wind down the Ricki’s and Cleo brands and downsize Bootlegger.
This decision will affect a combined 129 stores across Canada, including 75 Ricki’s locations and 54 Cleo stores.
Comark Holdings operates a total of 221 stores across eight Canadian provinces, employing around 2,000 people.
The company has filed for creditor protection under the Companies’ Creditors Arrangement Act (CCAA) as part of a broader restructuring effort.
The closures come amid a challenging period for the company, marked by multiple setbacks, including the COVID-19 pandemic, a November 2021 ransomware attack, and ongoing pressures from rising competition in the fashion retail industry.
Supply chain disruptions have also contributed to the company’s financial struggles.
Retail analyst Bruce Winder notes that middle retail, particularly mall-based stores that are neither low-end nor high-end, has suffered over the last decade.
The pandemic weakened both retailers and consumers, leading to changes in shopping behavior.
Consumers facing high inflation and taxes are opting for lower-cost online alternatives or luxury items, leaving middle retailers struggling to adapt.
Comark is seeking a court order to approve the liquidation of all Ricki’s and Cleo stores, though the storefronts will remain operational during the liquidation period.
The company will continue to explore opportunities for Bootlegger as part of the creditor protection process.
This development highlights the increasing challenges faced by traditional brick-and-mortar retailers in Canada, as many businesses shift towards e-commerce models to meet evolving consumer preferences.
