By Luigi De Rose
The Laval, Que. based retailer says in a statement that it filed for protection under the Bankruptcy and Insolvency Act as part of a restructuring process. With stores in Quebec and Ontario, two of the hardest hit provinces with the Covid-19 pandemic, hurt sales and forces retailer to seek protection.
According to Yahoo Fiance news, CEO Norman Decarie says store closures and other consequences of the pandemic put more pressure on the company's cash flow and financial health. He says the situation forced Sail "to make major decisions to ensure the company's sustainability."
The company says the filing will allow it to get support while it implements a plan aimed at restoring its financial health and better responding to the retail environment.
Employing nearly 1,800 people, its 14 Sail stores and four Sportium stores continue to be open in accordance with provincial public health guidelines.