Canadian independent tableware and kitchenware retailer Stokes has commenced a restructuring process aimed at securing its future growth and profitability.
The proceeding was initiated under the Companies’ Creditors Arrangement Act (CCAA).
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Stokes stated: “The difficult but necessary decision was made to facilitate the implementation of the company’s strategy that will secure its long-term viability in the best interest of its employees, customers and suppliers.”
Stokes, which was founded in 1935, is facing challenges posed by fundamental industry changes and a declining macroeconomic environment.
The company will focus on enhancing its digital capabilities and expanding its e-commerce platform to better compete in today’s retail market.
As part of the CCAA proceedings, Stokes will seek court approval to close underperforming store locations while retaining its profitable outlets in Québec and Ontario, alongside its head office in Montréal, Québec.
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By GlobalDataThe company operates a network of 95 stores across Canada.
The restructuring process is anticipated to allow Stokes to maintain approximately 500 jobs.
Throughout this transition, Stokes aims to uphold its commitment to delivering exceptional customer service without interruptions.
Meanwhile, the retailer’s management team expresses confidence that the restructuring will position Stokes as a more competitive entity within the retail sector.
To facilitate this process, the retailer appointed Ernst & Young as CCAA monitor, while FAAN Advisors Group will serve as chief restructuring officer.
Legal counsel for the company is being provided by Osler, Hoskin & Harcourt.
