Reitmans (Canada) Limited announces its plan to close HYBA retail stores and looks to grow HYBA brand in Reitmans stores

MONTREAL, March 1, 2018 /CNW Telbec/ - Reitmans (Canada) Limited (the "Company") announced today that it has initiated a plan to close all of its 17 HYBA store locations by the end of its current fiscal year, February 2, 2019.  HYBA stores were converted from former Smart Set store locations during 2015 in order to expand the HYBA brand's presence in the marketplace. Management is confident in the long-term growth potential of the HYBA brand and has determined that the optimum strategy is to continue to offer HYBA-branded products across Canada through the Company's 270 Reitmans store locations, as well as e-commerce through the Reitmans website. HYBA retail store sales represent less than 2% of the Company's total annual sales. Costs associated with HYBA store closures comprise non-cash asset write-offs of approximately $1.5 million after tax and a provision for onerous store leases of approximately $2.0 million after tax, to be reflected in the Company's fourth quarter results for the fiscal year ended February 3, 2018. The Company does not anticipate inventory write-downs or material employee severance costs. The Company will be reporting its results for the 53 weeks ended February 3, 2018 on April 4, 2018.

About Reitmans (Canada) Limited

Reitmans (Canada) Limited is a leading specialty fashion retailer, with over 8000 employees and operating 640 stores across Canada through its banners, Reitmans, Addition Elle, Penningtons, RW&CO., Thyme Maternity and Hyba.  Reitmans (Canada) Limited is a publicly traded company listed on the Toronto Stock Exchange (TSX:  RET, RET-A).  For more information, visit 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 described in the Operating Risk Management and Financial Risk Management sections of the Company's Annual Management Discussion and Analysis.  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 and  the ability of the Company to successfully implement its strategic 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