Canadian apparel retailer Bootlegger is set to continue operations following a major development in the restructuring of its parent company. On April 12, 2025, the Ontario Superior Court approved the sale of Bootlegger to a subsidiary of Comark Holdings Inc., allowing the retailer to be operated through Warehouse One Clothing Ltd., an affiliate of the parent company.
The decision comes as part of Comark’s broader creditor protection proceedings under the Companies’ Creditors Arrangement Act (CCAA). Justice Peter Cavanagh approved the transaction, which aims to preserve a portion of Bootlegger’s store footprint and secure employment for some of its staff following a period of financial uncertainty.
A Legacy Brand with Deep Canadian Roots
Bootlegger was founded in 1971 and became well known for its denim and casual apparel offerings. At the time of the CCAA filing, the retailer operated 53 standalone locations and shared another 19 locations with sister brands Ricki’s and Cleo.
However, as part of Comark’s restructuring plan, Ricki’s and Cleo were sold in March 2025 to Putman Investments—owner of Toys “R” Us Canada—for $14.4 million. That transaction marked a significant step in Comark’s effort to slim down its operations and focus on Bootlegger, its remaining apparel banner.
No Outside Bidders for Bootlegger
Despite interest from multiple parties, court filings indicate that no external bidders ultimately came forward with an offer to acquire Bootlegger. This paved the way for the retailer to remain within the Comark family, with operations transitioning to its affiliate Warehouse One.
The sale includes agreements with landlords to retain 45 retail leases. Some of these stores will be converted to Warehouse One locations, while others will continue to operate under the Bootlegger brand. The deal is expected to close later this month.
Within two days of the closing, staff at the retained stores will be issued termination notices—followed by employment offers from Warehouse One, ensuring some continuity in staffing.
Restructuring Driven by Mounting Financial Pressures
Comark’s move to seek creditor protection in January 2025 was the result of prolonged financial challenges. The company cited several factors contributing to its financial difficulties:
- COVID-19 Pandemic: Lockdowns and a major shift to online shopping negatively impacted foot traffic and in-store sales.
- Cybersecurity Breach: A ransomware attack in 2021 caused a major operational disruption, resulting in an $8.2 million revenue loss during a key sales period.
- Supply Chain Disruptions: Delays in receiving seasonal products led to missed revenue opportunities and aggressive markdowns that cut into margins.
- Increased Competition: The rise of low-cost fast fashion competitors drew value-focused consumers away from legacy mid-market retailers like Bootlegger.
These cumulative pressures led to a 19% drop in sales for Comark and a $21 million operating loss during the first nine months of 2024.
Mounting Debt Prompted Court Protection
By late 2024, Comark Holdings Inc. was under considerable financial strain, with liabilities exceeding $60 million. The bulk of this debt stemmed from overdue payments to suppliers, with approximately $44 million owed to merchandise vendors alone. The company also faced $5 million in unpaid rent to landlords across its retail portfolio. Compounding the situation, Comark’s senior secured lender, CIBC, demanded repayment of more than $32 million in loans.
These mounting obligations left the company with few options, ultimately leading it to seek protection under the Companies’ Creditors Arrangement Act (CCAA) in January 2025. The court filing enabled Comark to pause creditor actions and initiate a structured process to stabilize its business, sell off assets, and attempt to preserve elements of its operations—most notably the Bootlegger brand.
A New Chapter Under Warehouse One
Warehouse One, which operates its own national chain of value-oriented casualwear stores, will now oversee the Bootlegger brand through a related corporate structure. While some Bootlegger locations will be converted to Warehouse One stores, others will retain the Bootlegger branding—preserving a legacy that spans over five decades.
Canadian retail is boring. Nothing stands out as exciting or exceptional. Bootlegger needs a forward thinking CEO who can reshape this great brand.