For some, fashion retailer Le Chateau Inc. was the edgy store of their youth and 1990s clubwear. Others recall a place of prom dresses, business apparel and accessories.

B次元官网网址淚t was a trendsetting store,B次元官网网址� says Toronto resident Tara Greene. B次元官网网址淎s a teen, it was a very cool and exciting place to shop.B次元官网网址�

After six decades in operation, the Montreal-based clothing company joined the ranks of dozens of big-name retailers that have buckled under the weight of pandemic restrictions, filing for court protection in October and liquidating stores.

ItB次元官网网址檚 been a year of unrelenting pain in retail, with widespread economic shutdowns toppling cornerstones of CanadaB次元官网网址檚 retail industry just as easily as small operations.

And experts warn there are more casualties to come, as the second wave of cases forces further restrictions B次元官网网址� decimating cash flow and exposing broader underlying problems.

Some retail chains went into 2020 already saddled with massive debt, too many stores and a track record of underperformance.

B次元官网网址淭he sector has been in a bit of turmoil even before the pandemic,B次元官网网址� says Ramesh Venkat, director of the David Sobey Centre for Innovation in Retailing and Services at Saint MaryB次元官网网址檚 University in Halifax.

B次元官网网址淩etailers that started the year in financially bad shape just couldnB次元官网网址檛 survive. They didnB次元官网网址檛 have the financial resources to make it through these hard times.B次元官网网址�

Retail analysts say many also lacked a strong e-commerce presence and failed to keep up with shifting consumer behaviour.

B次元官网网址淪ome just arenB次元官网网址檛 appealing to the next generation of shoppers,B次元官网网址� says John Archer, chief development officer with the Toronto retail consultancy firm Three Sixty Collective.

B次元官网网址淭he Gen Zeds are different than millennials and some stores like Forever 21 realized even before the pandemic they werenB次元官网网址檛 cutting it for the new generation.B次元官网网址�

Then the pandemic hit, compelling many retailers to close or drastically curtail hours and customer capacity.

The shutdown sent overall retail sales into free fall, plummeting 30 per cent in April compared with a year earlier, Statistics Canada reported.

Clothing and shoe stores were hardest hit, down a staggering 87 per cent and 79 per cent, respectively, compared with April 2019.

The mounting toll of restrictions B次元官网网址� on top of the existing problems hounding retail B次元官网网址� was too much for some.

READ MORE:

Household names like footwear empire Aldo Group, outdoor recreation outfit Mountain Equipment Co-operative and clothing retailer Reitmans (Canada) Ltd. have all filed for creditor protection since the start of the pandemic.

So have Comark Holdings with clothing brands RickiB次元官网网址檚, Cleo and Bootlegger, Groupe Dynamite with brands Garage and Dynamite, and Ann Canada Inc. with womenB次元官网网址檚 clothing brands Ann Taylor and LOFT.

While some stores will disappear, experts say others are using creditor protection to step back from a risky retail environment and restructure after years of poor results.

Reitmans, for example, had seen its share price steadily decline for more than decade when the pandemic struck.

The Montreal-based company filed for creditor protection in May and began restructuring, liquidating its Addition Elle and Thyme Maternity stores to focus on its three remaining brands B次元官网网址� Reitmans, Penningtons and RW & CO.

Indeed, some of companies filing for creditor protection could come back B次元官网网址渓eaner and meaner,B次元官网网址� Archer says.

B次元官网网址淚f they were on the ropes already, they may have taken advantage of legal protection to take a breather and work with their suppliers and landlords and figure out how many stores they need.B次元官网网址�

Still, CanadaB次元官网网址檚 retail landscape is expected to lose thousands of stores as a result of restructuring and bankruptcies, putting many retail workers out of a job.

The first quarter of the year is a notoriously slow period for many retailers, and experts say without a robust holiday sales period it will be difficult for some to stay in business through the winter months.

B次元官网网址淭here are some companies that are obviously not thriving already, so with any sort of blip on the radar they are definitely going to have some issues,B次元官网网址� says Anwar White, a lecturer with the Bensadoun School of Retail Management at McGill University.

But he says the insolvencies brought on by the pandemic are part of a normal economic cycle that has just been accelerated and compressed into a shorter time frame.

B次元官网网址淚B次元官网网址檓 not thinking about this as a doom and gloom situation,B次元官网网址� White says. B次元官网网址淭his experience has forced retailers to really digitally evolve in lightspeed ways and do things completely differently than theyB次元官网网址檝e done before.B次元官网网址�

Yet unlike usual economic cycles, the current uncertainty plaguing the retail industry hinges in part on the length and scale of store closures.

Retail analyst Bruce Winder says he expects the new year, and a potentially worsening second wave of the pandemic, will usher in more bankruptcies.

But he says the number of insolvencies could be offset by federal aid, including the wage and rent subsidies.

B次元官网网址淵ouB次元官网网址檙e going to see a number of companies propped up by government subsidies that probably without them would have been in (creditor protection) a long time ago,B次元官网网址� Winder says.

B次元官网网址淭hese sort of zombie companies are operating with maybe 10 or 20 per cent of their normal revenues but theyB次元官网网址檙e still in business because the government is propping them up.B次元官网网址�

Brett Bundale, The Canadian Press

Like us on and follow us on .

Want to support local journalism during the pandemic? Make a donation