BRITISH COLUMBIA

Indigo to close Chapters store in Vancouver; blames rent hike

01/20/2015 12:56 EST | Updated 03/21/2015 05:59 EDT
VANCOUVER - Indigo Books & Music Inc. (TSX: IDG) says it will shut down its Robson Street Chapters location by the end of June because of a rent increase.

Canada's largest book retailer says a "very significant rent increase" made continued profitability untenable at the location.

CEO Heather Reisman said in a statement that "an increase of this magnitude would quite simply make this vibrant, profitable store unprofitable."

Indigo said it plans to open another location in the same area this year.

Reisman said the company continues to review all elements of its operations and looking at new real estate opportunities.

Indigo did not say if any employees will be laid off, but said it is working with Human Resources, regional directors and store management to support affected employees.