Comark Holdings Inc., the Vancouver-based parent company of Bootlegger Clothing Inc., Cleo Fashions Inc., and Ricki’s Fashions Inc., has filed for creditor protection under the Companies’ Creditors Arrangement Act (CCAA). The move signals turbulence in the Canadian retail landscape, as the company announces plans to shutter its Cleo and Ricki’s brands entirely and downsize Bootlegger in an effort to find a buyer.
The company, which operates 221 stores across eight Canadian provinces, employs more than 2,000 people, including retail and head office staff. Comark’s decision to wind down operations for Cleo and Ricki’s comes after years of financial strain, exacerbated by the COVID-19 pandemic, a ransomware attack, and intensifying competition from ultra low-cost fashion retailers.
A Sobering Decision for Survival
“After careful consideration of all reasonably available options, the company has determined that it is in the best interests of its stakeholders to wind down its Ricki’s and Cleo operations and to close all retail store locations under those banners,” Comark said in a statement.
The company’s struggles have been mounting for years. The pandemic led to prolonged store closures, while a 2021 ransomware attack disrupted operations at a critical holiday sales period, resulting in an $8.2 million revenue loss. Additionally, global supply chain issues caused inventory delays that forced heavy markdowns, further straining profit margins.
Comark’s challenges reflect broader trends, where mid-tier retailers are being squeezed between high-end brands and aggressive low-cost players like Shein and Temu, according to the company in a statement.
While Cleo and Ricki’s will be entirely liquidated, Comark hopes to salvage Bootlegger by downsizing its store footprint and seeking a buyer for the remaining business. The casual clothing retailer, which has been a staple in Canadian malls since the 1970s, has faced a 15% year-over-year decline in sales.
The closure of Cleo and Ricki’s, combined with downsizing at Bootlegger, could lead to as many as 200 vacant retail locations across Canada. This wave of vacancies will ripple through shopping malls, suburban plazas, and power centres where these stores are typically located.
A Legacy of Fashion Retail in Canada
Founded in 1976, Comark has played a prominent role in Canadian fashion retail. Its banners, including Cleo and Ricki’s, catered to working women seeking professional and casual attire. Bootlegger, meanwhile, became a go-to destination for casual denim and activewear.
However, the rise of e-commerce, evolving consumer preferences, and a post-pandemic shift to hybrid work have upended demand for traditional officewear—a category that Cleo and Ricki’s heavily relied on.
Financial Pressures Come to a Head
Comark’s financial difficulties are well-documented. In 2024, the company reported a 19% decline in sales and a $21 million operating loss for the first nine months of the year. Total liabilities now exceed $168 million, including $61 million in accounts payable and $44 million owed to merchandise vendors.
The company’s largest creditor, CIBC, has issued demand notices, declaring all outstanding balances under its credit facilities immediately due. Vendors, landlords, and service providers have also initiated legal claims, seeking overdue payments.
A Perfect Storm of Challenges
Several factors contributed to Comark’s downfall:
- Pandemic Disruptions: Extended store closures during key shopping periods led to steep losses in revenue.
- Cyberattack: The 2021 ransomware attack halted operations for weeks, crippling inventory management and e-commerce.
- Supply Chain Woes: Seasonal merchandise arrived late, forcing markdowns and eroding profit margins.
- Competition: Ultra low-cost retailers disrupted the market, drawing budget-conscious consumers away from mid-tier brands.
What’s Next for Employees and Stakeholders?
Comark’s restructuring under the CCAA will leave more than 2,000 employees in limbo. While store-level staff will likely see their roles eliminated as stores wind down, head office employees may face a similar fate if a buyer for Bootlegger cannot be secured.
The ripple effects will extend to landlords, vendors, and service providers like Parian Logistics, which is owed $4.2 million for warehousing and distribution services. Without a steady revenue stream, many of these stakeholders will face significant losses.
A Difficult Road Ahead
As Comark begins the arduous process of liquidating two of its legacy brands, the future of Bootlegger remains uncertain. The once-thriving retailer must navigate a reduced footprint, intense competition, and a challenging economic climate to secure its survival.
For Canada’s retail industry, the closures serve as a stark reminder of the challenges ahead. From e-commerce disruption to shifting consumer habits, retailers must adapt swiftly to survive.
In the meantime, thousands of employees, landlords, and suppliers are left grappling with the fallout. And to some, this is the end of an era where it feels like we’re losing yet another piece of Canadian retail history.
They left out poor business decisions as why they need to close down. But they never did take accountability for any of their actions.
THE INTERNAL TOXICITY, STARTING AT THE TOP & THE ,FEAR MONGERING THEIR STAFF,& DISMISSING HARD,HONEST WORKERS WHO WOULD NOT SUCCUMB TO THE BULLYING TACTICS BROUGHT THEM DOWN,EXACTLY LIKE ROMAN EMPIRE, IMPLODED FROM WITHIN ….COMPANY WHO STARTED OUT IN THE 70’S UNDER ” IRENE HILL” VERY ETHICAL,COMPASSIONATE OPERATION ,TURNED TO GREED “IN FIGHTING,BULLYING,HORRIFIC GAME PLAYING ,PITTING EMPLOYEES AGAINST EACH OTHER,DISHONESTY REIGHNED SUPREME STARTING WITH CEO,MANAGERS ,TEAM LEADS ETC ,HORRIBLE TOXIC ENVIRONMENT, K.A.R.M.A
KNOWS BEST ….GOD IS LARGE AND IN CHARGE…
A very well-written, concise description of what happened to this once thriving retailer.
Keeping Bootlegger and getting rid of Ricki’s? ?? Should be the opposite!
I am in tears as i write this. Rickis is the only store that fits me well. I am at a loss of words as to where and how i will find clothes for work now. They should close bootlegger and save rickis instead. This is absolutely heart breaking. My entiee wardrobe is rickis. I really dont know where i will be able to buy clothes now. I wish they could atleast stay and operate as an online retailer with no physical stores. Or will bootlegger carry rickis clothes ?
REITMANS GREAT STORES,& SOOOO MANY OTHERS OUT THERE ” THINK OUTSIDE THE BOX ” NORTHERN REFLECTIONS OUTSTANDING ….SEVICE,& PRICES… & THEYRE IN ALL THE MALLS RICKIES & CLEO WERE IN…WINNERS… THE BAY…MARSHALS … TO NAME A FEW!!! ALSO NORTHERN REFLECTIONS HAVE A GREAT GIFT PLAN…CHECK THEM OUT,STILL MANY MANY GREAT WOMEN RETAILERS OUT THERE,WHO CARE!!!!
Actually, the Bootlegger head office team was sacked at the same time they sacked the Ricki’s & Cleo teams – it’s not a restructuring, more like they’re using those Bootlegger stores to sell off the companies’ inventory whilst hoping someone will buy the name.
My heart goes out to the employees. I have always been well-treated and as a result well-dressed by the amazing gals at the Cleo location in Cornwall, Ontario. Have been a customer for years.
This sucks.
I love Cleo and Ricky’s heartbroken that they are closing. What do we do if we have gift cards at the moment that we got for Christmas?
They are valid until January 17 AFAIK.
I have a feeling this is going to impact Haney Place Mall in Maple Ridge as it’s a combined Ricki’s/Cleo/Bootlegger all in one store.
I am shocked by this news and the fact the gift cards especially from christmas have to be used by the 17th of this month. I always shop there and hope the the employees find new employment.