MONTREAL, Jan. 14, 2016 /CNW Telbec/ - Reitmans (Canada) Limited (RCL) today announced initiatives to reduce its operating costs as it continues its evolution towards becoming a world-class retailer. These adjustments to RCL's cost structure aim to strengthen the Company in the face of an increasingly competitive and challenging retail environment and offset pressures brought on by the impact of a weaker Canadian dollar.
Following a re-engineering of its structure and processes, the Company is streamlining its workforce to better support the future needs of the business. As such, it is eliminating 77 positions, or approximately 10% of its head office employees. This exercise will result in severance costs of approximately $2 million in the fourth quarter ending January 30, 2016 and generate projected annualized savings of approximately $6 million, which will be reinvested to support the Company's growth strategy.
"These changes are consistent with our ongoing transformation. Over the last two years, we have looked at every part of our organization, from sourcing, merchandising and e-commerce to optimizing our real estate portfolio", said Walter Lamothe, Chief Operating Officer and President, Retail for Reitmans (Canada) Limited. "Our industry and our consumers are changing faster than ever before. As a result, we need to significantly increase our agility and improve our efficiency. Our ability to respond quickly to these new demands and continue to reinvent ourselves will be key to our long-term growth and future success."
About Reitmans (Canada) Limited
Reitmans (Canada) Limited is Canada's leading specialty fashion retailer. Founded in Montreal in 1926, the Company today employs 10,000 Canadians and operates over 700 stores across Canada through its banners Reitmans, Penningtons, Addition Elle, RW&CO., Thyme Maternity, Hyba and Smart Set. Reitmans (Canada) Limited promotes women's health and welfare through its various community initiatives. Reitmans (Canada) Limited is a publicly traded company listed on the Toronto Stock Exchange (TSX: RET, RET-A). For more information, visit the company's website, www.reitmanscanadalimited.com.
All of the statements contained herein, other than statements of fact that are independently verifiable at the date hereof, are forward-looking statements. Such statements, based as they are on the current expectations of management, inherently involve numerous risks and uncertainties, known and unknown, many of which are beyond the Company's control. Such risks include but are not limited to: the impact of general economic conditions, general conditions in the retail industry, seasonality, weather and other risks included in public filings of the Company, including those listed in the "Operating Risk Management and Financial Risk Management" sections of the Company's Management Discussion and Analysis for the year ended January 31, 2015. Consequently, actual future results may differ materially from the anticipated results expressed in forward-looking statements, which reflect the Company's expectations only as of the date of this press announcement. Forward-looking statements are based upon the Company's current estimates, beliefs and assumptions, which are based on management's perception of historical trends, current conditions and currently expected future developments, as well as other factors it believes are appropriate in the circumstances. Specific forward-looking statements in this press announcement include, but are not limited to, statements with respect to the Company's anticipated future results and events, future liquidity, planned capital expenditures, amount of pension plan contributions, status and impact of systems implementation, the ability of the Company to successfully implement its strategic initiatives and cost reduction and productivity improvement initiatives as well as the impact of such initiatives. The reader should not place undue reliance on any forward-looking statements included herein. These statements speak only as of the date made and the Company is under no obligation and disavows any intention to update or revise such statements as a result of any event, circumstances or otherwise, except to the extent required under applicable securities law.
SOURCE Reitmans (Canada) Limited
For further information: Walter Lamothe, Chief Operating Officer and President, Retail, Reitmans (Canada) Limited, 514-384-1140, ext. 4300