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The Globe and Mail

Reitmans to take $4-million writedown on closings, conversions

A 2007 file photo of a Cassis location in Toronto.

Philip Cheung for The Globe and Mail/philip cheung The Globe and Mail

Clothing retailer Reitmans (Canada) Ltd. said Wednesday that it will take a $4-million writedown in the third quarter as it closes its 25 Cassis stores.

The company plans to convert most of the locations into stores under its other Reitmans banners, though it didn't specify how many. The decision follows a review of strategic alternatives.

"Despite improvements in the performance of the Cassis banner since its inception, the company will refocus its sales and merchandising efforts by converting to other banners with a view to enhancing sales in these store locations," the company said in a release.

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The writedown includes costs from the writeoff of certain assets and severance payments.

Reitmans, which also operates under the banners Reitmans, Smart Set, RW & CO., Thyme Maternity, Penningtons and Addition Elle, said that Cassis sales represent 2 per cent of its annual sales.

Shares in the company were up two cents at $14.86 in thin early trading on the Toronto Stock Exchange.

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