Bad news for any shoppers at Pine Centre Mall - Ricki's may be shutting down soon.
Vancouver-based Comark Holdings, the parent company of Bootlegger and Ricki's parent company, announced on Tuesday, Jan. 7 that it will enter a period of creditor protection.
That means that Comark Holdings' assets are protected from creditors' claims in bankruptcy or from lawsuits aimed at recovering debt.
Bootlegger is reportedly going to be restructured.
The situation is due to several reasons, including years of financial strain after COVID-19, a ransomware attack, supply chain issues and competition from online ultra-low-cost brands like Temu and Shein, Comark Holdings stated in a news release.
“After careful consideration of all reasonably available options, the company has determined that it is in the best interests of its stakeholders to wind down its Ricki’s and Cleo operations and to close all Ricki’s and Cleo retail store locations," stated Comark Holdings in a press release “The company will continue to explore opportunities with respect to Bootlegger through the CCAA process, which will include reducing its retail footprint to better position the company in today’s retail environment.”
Comark Holdings is seeking a further court order approving the full liquidation of all Ricki’s and Cleo's and a select number of Bootlegger stores. These stores will however remain open until the decision is finalized.
Most Bootlegger stores will be restructured, the company stated. It is unclear what this means for the Bootlegger in Pine Centre Mall at this time.
One Ricki's employee told The Citizen they were “shocked and disappointed, both as an employee and as a customer in Prince George.”
Bootlegger customers will have until Jan. 17 to return items, use gift cards and redeem or receive loyalty points.
This is not the first time Comark Holdings has entered creditor protection, as the company also filed for these protections during COVID-19 and lost more than 50 storefront locations during the pandemic.
Currently, Ricki's employs ten people in Prince George while six people work Bootleggers.
