(The Canadian Press)

(The Canadian Press)

DavidsTea to shrink network to 18 stores in Canada after renegotiating leases

Move comes after DavidsTea closed 82 other stores in Canada and all 42 of its stores in the U.S.

DavidsTea Inc. will shrink its retail store network to 18 Canadian locations as the insolvent beverage chain shutters 82 more stores in the country while dealing with the impact of COVID-19.

The Montreal-based company says it is sending out lease termination notices for the stores and expects them to be wound down within the next 30 days.

The move comes after DavidsTea closed 82 other stores in Canada and all 42 of its stores in the U.S. in early July to focus on its e-commerce business and supplying grocery stores and pharmacies.

The company said at the time that it would seek more favourable lease terms for the remaining 100 stores in Canada and may permanently shut additional locations if landlords are unwilling to negotiate suitable leases.

DavidsTea now says it was able to secure new, more favourable lease terms and conditions for 18 of its locations, which will reopen.

The company has obtained creditor protection under the Companies Creditors Arrangement Act (CCAA) warned in mid-June that it could begin a formal restructuring depending on the outcome of its talks with landlords, who hadn’t received rent from David’s Tea for April, May and June.

“We believe that a select group of our best-performing stores, complementing our growing online and wholesale business model and supported by an entrepreneurial organization, will enhance DavidsTea’s ability to emerge from the CCAA restructuring process as a more sustainable and resilient organization,” stated company founder, chairman and interim CEO Herschel Segal.

The 18 stores are located in major shopping malls. Seven are in Quebec, five in Ontario and the rest in Alberta, British Columbia, Manitoba and New Brunswick.

“Our decision to reopen these select stores is consistent with our objective to create a leaner, more efficient company, positioned for long-term growth.”

The Canadian Press

Like us on Facebook and follow us on Twitter.

Want to support local journalism? Make a donation here.

Just Posted

Langley Mustangs high jumper Aiden Grout, seen here in McLeod Athletic Park in Langley in 2019, has just qualified for several top international competitions, including the Olympic trials. (Photo courtesy Vid Wadhwani)
VIDEO: With one jump, Langley Mustangs high jumper Aiden Grout has qualified for three international competitions

Maple Ridge resident records new personal best at McLeod Athletic Park in Langley

A local letter writer would appreciate if cyclists would think more about safety while riding in the area of River Road in North Langley. (Black Press Media files)
LETTER: North Langley route popular with cyclists but letter writer urges caution

A road user has concerns about some of the cycling habits she’s seeing in the area of River Road

Conservative leader Erin O’Toole spoke to members of the Greater Langley Chamber of Commerce via a Zoom chat with chamber CEO Colleen Clark on Friday, June 11. (Greater Langley Chamber of Commerce/Special to the Langley Advance Times)
Conservative leader talks tourism, trade, SkyTrain with Langley Chamber

The virtual fireside chat included talk about childcare and the budget

Deeba Mostafaie-Mehr, Setare Maleki Rizi, and Olivia Chen Xu from R.E. Mountain Secondary are recipients of three prestigious scholarships. (Langley School District/Special to Langley Advance Times)
Langley STEM students shine as recipients of prestigious scholarships

Three students from R.E. Mountain Secondary recognized

The new Langley Memorial Hospital emergency room opened for its first patients on Tuesday, May 4. (Government of B.C./Special to the Langley Advance Times)
LETTER: Aldergrove woman underwhelmed with new hospital ER

New ER is nice but needs adequate staffing, local woman writes

Canadian Prime Minister Justin Trudeau participates in a plenary session at the G7 Summit in Carbis Bay, England on Friday June 11, 2021. THE CANADIAN PRESS/Adrian Wyld
Canada donating 13M surplus COVID-19 vaccine doses to poor countries

Trudeau says the government will pay for 87 million shots to be distributed to poor countries

Premier John Horgan speaks as provincial health officer Dr. Bonnie Henry, right, and health minister Adrian Dix look on during a press conference to update on the province’s fall pandemic preparedness plan during a press conference from the press theatre at Legislature in Victoria, Wednesday, Sept. 9, 2020. THE CANADIAN PRESS/Chad Hipolito
B.C. officials to provide details on Step 2 of COVID reopening plan Monday

Step 2 could allow for larger gatherings and a resumption of recreational travel

Indigenous Services Minister Marc Miller is seen during a news conference, Wednesday May 19, 2021 in Ottawa. THE CANADIAN PRESS/Adrian Wyld
Indigenous child-welfare battle heads to court despite calls for Ottawa to drop cases

Feds are poised to argue against two Canadian Human Rights Tribunal rulings

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

The Great Ogopogo Bathtub Race has been held in Summerland as a fundraising event. Do you know which Canadian city introduced this sport? (Black Press file photo)
QUIZ: A summer’s day at the water

How much do you know about boats, lakes and water?

Two-year-old Ivy McLeod laughs while playing with Lucky the puppy outside their Chilliwack home on Thursday, June 10, 2021. (Jenna Hauck/ Chilliwack Progress)
VIDEO: B.C. family finds ‘perfect’ puppy with limb difference for 2-year-old Ivy

Ivy has special bond with Lucky the puppy who was also born with limb difference

A million-dollar ticket was sold to an individual in Vernon from the Lotto Max draw Friday, June 11, 2021. (Photo courtesy of BCLC)
Lottery ticket worth $1 million sold in Vernon

One lucky individual holds one of 20 tickets worth $1 million from Friday’s Lotto Max draw

“65 years, I’ve carried the stories in my mind and live it every day,” says Jack Kruger. (Athena Bonneau)
‘Maybe this time they will listen’: Survivor shares stories from B.C. residential school

Jack Kruger, living in Syilx territory, wasn’t surprised by news of 215 children’s remains found on the grounds of the former Kamloops Indian Residential School

Most Read