MONTREAL, Nov. 25, 2014 /CNW Telbec/ - Reitmans (Canada) Limited announced today that it has initiated a plan to enhance profitability which involves the closing of its 107 Smart Set stores over the next twelve to eighteen months. Despite some improvements in the performance of the Smart Set banner, management has determined that its optimum strategy to improve its operating results is to refocus its sales and merchandising efforts by converting approximately 76 Smart Set stores to other Company banners and 31 store closures. The Smart Set banner represents approximately 10% of total annual sales of the Company, amounting to approximately $96 million for the 12 months ended February 1, 2014. Costs associated with the Smart Set banner closure comprise non-cash asset write-offs of approximately $2.2 million after tax to be reflected in the Company's third quarter results. The Company does not anticipate inventory write-downs or material employee severance costs. The Company will be reporting its results for the nine months ended November 1, 2014 on December 4, 2014.
Montreal, November 25, 2014
Jeremy H. Reitman
Chairman and Chief Executive Officer
SOURCE: Reitmans (Canada) Limited
For further information: Jeremy H. Reitman, Chairman and Chief Executive Officer, Telephone: (514) 385-2630, Corporate Website: www.reitmans.ca