Reitmans (Canada) Limited announced that following an evaluation and review of strategic alternatives, the Company has decided to close its 25 Cassis stores, primarily through conversion to other Reitmans banners. Despite improvements in the performance of the Cassis banner since its inception, the Company will refocus its sales and merchandising efforts by converting to other banners with a view to enhancing sales in these store locations.
The Cassis banner represents less than 2% of total annual sales of the Company, amounting to approximately $20 million at January 29, 2011. Costs associated with the Cassis banner closures, including asset write-offs and severance related costs, amount to approximately $4 million after tax and will be reflected in our third quarter results.
Reitmans, Canada's largest women's specialty retailer, was founded in 1926 by Herman and Sarah Reitman. Their traditional "general store" opened on St-Laurent Boulevard in Montreal, Quebec, Canada and was run and managed by the Reitman family. The immense popularity of their clothing line prompted them to open their second store, which exclusively sold women's apparel.
The Cassis banner represents less than 2% of total annual sales of the Company, amounting to approximately $20 million at January 29, 2011. Costs associated with the Cassis banner closures, including asset write-offs and severance related costs, amount to approximately $4 million after tax and will be reflected in our third quarter results.
Reitmans, Canada's largest women's specialty retailer, was founded in 1926 by Herman and Sarah Reitman. Their traditional "general store" opened on St-Laurent Boulevard in Montreal, Quebec, Canada and was run and managed by the Reitman family. The immense popularity of their clothing line prompted them to open their second store, which exclusively sold women's apparel.
