MONTREAL, Aug. 4, 2015 /CNW Telbec/ - Canadian women's fashion retailer Laura's Shoppe (P.V.) Inc. has filed a Notice of Intention to Make a Proposal to its creditors under the Bankruptcy and Insolvency Act.
The Quebec-based company, founded in 1930, operates over 150 stores across the country under the banners Laura, Laura Petites, Laura Plus and Melanie Lyne. The company experienced large losses in 2012 and 2013, attributable to merchandising changes that did not resonate with customers. Sales have since rebounded, but additional initiatives need to be put into place to complete the restructuring of the retailer's operations. Filing is one of the steps that has been taken to achieve this objective.
"It is with great regret – yet continued optimism and confidence – that we have filed a Notice of Intention to Make a Proposal to our creditors under the Bankruptcy and Insolvency Act. We fully expect to reorganize the business, emerge as a strong and well-financed retailer and continue to serve our customers for many years to come. We continue to fill very important needs in the marketplace. Our customers have shown incredible loyalty to us, and have responded well to our redoubled efforts to please them during these difficult economic times" said Kalman Fisher, President of Laura Canada, in a letter to employees.
The company is currently developing its restructuring plans, which include the closing of underperforming stores over the next few months, but will otherwise continue with business as usual.
To sell off product prior to store closings, sales will begin this week with discounts up to 80% off on summer merchandise, and an additional 20% being offered on new merchandise in all stores.
SOURCE Laura's Shoppe (P.V.) Inc.
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