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Luggage and accessories retailer Bentley Leathers Inc. will close more than one-third of its stores under a restructuring plan approved this week.

The Montreal-based retail chain announced that it will close 88 stores in Canada and cut 422 jobs. The company currently has 251 stores and employs 1,722 people.

Bentley first announced its proposed restructuring late last month, citing digital disruption and changing consumer behaviour as factors that pushed sales down and led to losses. The company said at the time that closing underperforming stores would help to ensure the "long-term viability" of the business.

After court proceedings last week, Bentley said the support of lenders, landlords and suppliers has provided new credit lines and made it possible to exit court protection from creditors.

"The last couple of weeks have been very difficult for all our employees, particularly with the holiday season so close," Bentley CEO Walter Lamothe said in a statement. "We were pleased to be able to end the uncertainty faced by our staff, although clearly it is very sad that we were unable to save all the stores."

The company will now focus on creating a “unique position” for the brand and attracting a younger generation of customers, the statement added.

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