Target Corp. has agreed to pay $10-million to settle a class-action suit related to the massive 2013 data breach that the lawsuit says compromised personal financial information, according to published reports.Scott Olson/Getty Images
A trio of apparel chains, including Bootlegger, got court protection from its creditors on Thursday, adding to the growing ranks of retailers struggling amid rising low-cost fashion-retail competition.
The latest chains to be operating under bankruptcy protection are owned by Comark Inc. and run more than 300 stores in shopping malls and open-air suburban power centers across Canada. Comark's other two banners are Ricki's and cleo.
They join a growing number of retailers that have faltered over the past year or so, among them Jacob, Mexx and Bikini Village, although the latter is being bought by lingerie specialist La Vie en Rose.
Comark plans to close some of its underperforming stores under each of its banners in the next 30 days, said Gerry Bachynski, chief executive officer of Comark. For now, the stores will continue to operate, he added. "We will continue to stock the latest mix of exclusive private-label and nationally branded apparel."
Retailers, especially in the fashion sector, have felt the pressure of big players with deep pockets, ranging from the Swedish H&M to the Spanish Zara and American Forever 21. Even discount giant Wal-Mart Canada has tried to put a push on its fashion offerings, while domestic player Joe Fresh, owned by grocer Loblaw Cos. Ltd., has also stolen business from mainstream retailers.
Even so, with the impending departure of Target Corp. from Canada, the pressures could ease a bit over the next several months, industry watchers have said.
Comark is reviewing corporate staffing levels at its Mississauga headquarters and regional offices as well as its distribution centers, Mr. Bachynski said.
The company was granted protection by Ontario Superior Court under the Companies' Creditors Arrangement Act. Alvarez & Marsal Canada Inc. has been appointed as monitor and Osler, Hoskin & Harcourt LLP is legal advisor to Comark. Alvarez is also the monitor in the Target Canada insolvency proceedings while Osler represents Target in those CCAA proceedings.