BUSINESS

Laura's Shoppe To Close 20 Stores, Seek Rent Cuts On 26 Others

08/21/2015 02:46 EDT | Updated 08/21/2016 05:59 EDT
Facebook/Laura Canada
MONTREAL — Canadian retailer Laura's Shoppe Inc. is planning to close 20 stores within a few weeks and seek rent reductions on 26 others as it restructures in an effort to ensure its survival.

The stores will close by Sept. 13, says a report from the court-appointed monitor KPMG.

Besides the Laura, Laura Petites and Laura Plus brands, the company operates under the Melanie Lyne banner.

It wasn't immediately clear which of the chain's 162 locations are affected or how many of Laura's 2,330 employees will lose their jobs.

The company is also terminating leases at its office and warehouse in Laval, Que., and office in Mississauga, Ont. 

The Montreal-based company, founded in 1930, had almost $124 million in liabilities and only $72.5 million of assets as of July 4, according to the report.

Laura's Shoppe filed for creditor protection earlier this month.

Its primary lender Salus Capital Partners of Massachusetts was owed almost $22 million.

Mall owner Cadillac Fairview, which has 39 stores owned by the company, has agreed to provide up to $10 million in restructuring financing.

The company operates in all provinces but Prince Edward Island, and two e-commerce sites.

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