Reitmans (Canada) Limited Announces Restructuring Plan to Position the Company for the Future

MONTREAL, June 1, 2020 /CNW Telbec/ - Reitmans (Canada) Limited (the "Company") announces today part of the outlines of its operational and commercial restructuring plan to re-position the Company for long-term success. The Company will build its future and carry on its legacy in retail fashion with three premium brands: Reitmans, Penningtons and RW & CO. These brands will continue to evolve in an omnichannel retail environment with a combined focus on e-commerce and a solid retail network of physical stores in Canada. Furthermore, the Company will optimize its retail footprint and close the Thyme Maternity and Addition Elle brands over the course of Summer 2020.

This plan is part of the process announced by Reitmans (Canada) Limited on May 19, 2020, to restructure its operational, commercial and financial affairs under the protection of the Companies' Creditors Arrangement Act (the "CCAA").

Stephen F. Reitman, President and Chief Executive Officer of Reitmans (Canada) Limited, said: "The strategic decision to close two beloved Canadian fashion brands was not made lightly, but it is necessary to enable our business to move forward as a profitable organization. All of the efforts we put forth to turn these brands around were derailed by the COVID-19 pandemic and, unfortunately, we can no longer afford the required resources to bring them back to profitability."

In the coming days and weeks, all physical stores of the Company will continue to safely reopen based on governmental guidelines, including all 77 Addition Elle and 54 Thyme Maternity stores. For these two brands, the objective will be to liquidate the inventory in anticipation of their permanent closure, which is planned for July 18, 2020 for Thyme Maternity, and August 15, 2020 for Addition Elle. Their respective e-commerce websites are expected to shut down on the same date as the closure of the physical stores.

As a result of this decision and of the restructuring of all teams within the organization, the Company will be reducing its workforce by approximately 1,100 employees in its retail stores and approximately 300 employees at its Head Office in Montreal.  Mr. Reitman continued: "The impact on all of our employees is, by far, the most difficult and emotional part of this whole process. We are heartbroken to have to say goodbye to esteemed colleagues and we are truly grateful for their hard work and many contributions to our Company over the years."

Moving forward, the Company will proudly continue serving customers at Reitmans, Penningtons and RW & CO. through both e-commerce and brick and mortar channels across Canada.

Reitmans will continue offering must-haves at affordable prices for every woman. "With an enhanced product offering at Penningtons, where women can find aspirational and affordable head-to-toe fashion, we will do everything possible to make our Addition Elle community excited to continue to shop with us," added Mr. Reitman. "We are committed to the plus-size market in Canada with both a size-inclusive offering at Reitmans, and dedicated expertise and service at Penningtons." RW & CO. will remain the premier contemporary brand specializing in curated collections of well-crafted city wear for men and women.

Mr. Reitman concluded: "As we forge ahead with these three flagship Canadian brands, our intention is to write the next chapter of our Company's history for a stronger and brighter future. We take this opportunity to thank our loyal Thyme Maternity and Addition Elle customers for their incredible support, and we look forward to welcoming them in our other stores for years to come."

About Reitmans (Canada) Limited
The Company is a leading ladies apparel retailer with retail outlets throughout Canada. The Company employs approximately 6,800 people and operates 576 stores consisting of 259 Reitmans, 106 Penningtons, 80 RW & CO., 77 Addition Elle and 54 Thyme Maternity. The Company is a publicly traded company listed on the Toronto Stock Exchange (TSX:  RET, RET-A). For more information, visit www.reitmanscanadalimited.com.

Forward-Looking Statements
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 the current COVID-19 pandemic on the Company's business and affairs, including the ability to operate the physical stores in conformity with provincial and regional governmental guidelines and timing therefor, the risks and uncertainties related to the CCAA process, including the ability for the Company to obtain financing during and following the CCAA process, 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 most recent Management Discussion and Analysis for the fiscal year ended February 1, 2020. 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 release. Forward-looking statements are based upon the Company's current estimates, beliefs and assumptions, which are based on management's assessment of government publications regarding the COVID-19 pandemic, including on the timing of re-opening of physical stores and on the public health guidelines associated with such re-opening, its assessment of current and future consumer behavior, including the impact of the COVID-19 on such behavior, its assumption that, in the case of the CCAA process, it will obtain all necessary court orders extending the applicable stays of actions and proceedings against the Company to permit it to propose a restructuring plan to the affected creditors, its 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 release may include, but are not limited to, statements with respect to the capacity to obtain financing. 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