Stokes Inc., the largest independent tableware and kitchenware retailer in Canada, announced Friday that it has initiated the process to reposition its business for future growth and profitability by securing court protection under the Companies’ Creditors Arrangement Act (CCAA).
“The difficult but necessary decision was made to facilitate the implementation of the Company’s strategy that will secure its long-term viability in the best interest of its employees, customers and suppliers,” said a news release.
“Stokes has been a cornerstone of the Canadian retail community since 1935 and like most other retailers, is adapting to fundamental changes in the industry and a deteriorating macroeconomic environment. To better compete in today’s retail environment, Stokes will be reducing its retail footprint in Canada and streamlining its head office operations while focusing on digital transformation and its e-commerce platform.
“During the CCAA proceedings, Stokes will be seeking the Court’s authorization to close its less profitable stores while maintaining its profitable retail locations in Québec and Ontario and its head office operations in Montréal, Québec. Once the restructuring is completed, Stokes expects to continue to employ approximately 500 Canadians.”
While a comprehensive restructuring plan is being developed, Stokes will continue to deliver the same exceptional customer experience and service, with no interruption in business operations. The company’s management is confident that it will emerge from its restructuring as a healthier and more competitive business, well positioned for the future, it said.
Ernst & Young Inc. was appointed as the CCAA Monitor and FAAN Advisors Group Inc. was appointed as Chief Restructuring Officer. Osler, Hoskin & Harcourt LLP acts as legal counsel to the Company.
Additional information related to the CCAA proceedings will be available on the Monitor’s website at www.ey.com/ca/stokes.
Stokes Inc. is a leading tableware and kitchenware retailer founded in 1935. The Company operates its retail business from 95 stores across Canada as well as from an online store. Stokes primarily sells its merchandise under the brands “Stokes”, “Thinkkitchen”, “Remy Olivier” and other private labels.
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