DavidsTea is undergoing restructuring, due to COVID-19, and move to online sales.
The tea company announced in a release it is currently requesting creditor protections.
In a release, officials say they are looking at a number of factors, including whether they can reach lease agreements with landlords at their over 200 locations.
The company expects a significant number of stores may close.
“As we indicated before, our challenge is to restructure our North American retail footprint in order to decrease the ongoing losses caused by unprofitable stores,” said Herschel Segal, Founder, Chairman and Interim CEO of DAVIDsTEA.
“I sincerely regret the impact the restructuring of our business will have on some of our exceptional and passionate employees,” said Segal.
“This has been an incredibly difficult decision to take, but a necessary one to ensure the long-term viability of our Company. I would like to sincerely thank our impacted employees for their contributions and for their passion for our brand through the years.”
The company will also be filing a Chapter 15 for its U.S. subsidiary under the United States Bankruptcy Code to follow the same restructuring process there.
There is no word on the fate of the David’s Tea location at CF Champlain in Dieppe.
It has not reopened since the closure in March due to COVID-19.
