(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.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

It’s no longer 80th Avenue. With the opening the 216th overpass, the road to TWU has been renamed University Drive. (Special to Langley Advance Times)
LETTER: What’s the real motive behind renaming Langley road?

University District erases historic names of several areas

The Village, a secure dementia facility, opened in Brookswood a few years back. It was the subject of a recent COVID outbreak, which was declared over on Oct. 30, 2020. (Heather Colpitts/Langley Advance Times)
COVID outbreaks declared over in Langley care homes

Brookswood and Fort Langley seniors facilities given all clear by B.C.’s top doctor

A Mercedes SUV is covered at a gas station in the Clayton area following a deadly shooting there on Sept. 28, 2019. (File photo)
Police took one person into custody on Friday afternoon after a report of an assault. (Heather Colpitts/Langley Advance Times)
Langley RCMP converge to take one into custody over assault report

Police apprehension was near 203rd Street between Fraser Highway and 56th Street after brief chase

Aldergrove Kodiaks open the 2020-2021 season with a four game winning streak. (Aldergrove Star files)
Aldergrove Kodiaks start COVID restricted season with a roar

Playing in cohorts, the junior hockey team’s first game against Surrey Knights resulted in 7-0 win

Under special lights, youngsters such as Lucas, bowled pumpkins to knock over glow in the dark bowling pins at the South Ridge Church Pumpkin Fest. (Heather Colpitts/Langley Advance Times)
VIDEO: Langley church offers families socially distanced drive through autumn fair

Lots of kids dressed in costume for the South Ridge Church Pumpkin Patch Friday evening

This house at 414 Royal Ave. became notorious for its residents’ and visitors’ penchant for attracting police. It was also the site of a gruesome torture in August 2018. It was demolished in 2019. KTW
6-year sentence for Kamloops man who helped carve ‘rat’ into flesh of fellow gang member

Ricky Dennis was one of three men involved in the August 2018 attack

Among the pumpkin carvings created this year by Rick Chong of Abbotsford is this tribute to fallen officer Cont. Allan Young.
Abbotsford pumpkin carver’s creations include fallen police officer

Rick Chong carves and displays 30 pumpkins every year

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

Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

An online fundraising campaign in support of the six-year-old boy, Edgar Colby, who was hit by a car on Range Road Oct. 25 has raised more than $62,000 in a day. (Submitted)
$62K raised in 1 day for boy in coma at BC Children’s after being hit by vehicle in Yukon

The boy’s aunt says the family is “very grateful” for the support they’ve received from the community

The Excelsior 4 are set to make their second court appearance in Abbotsford on Monday (Nov. 2). (Ben Lypka/Abbotsford News)
‘Excelsior 4’: Animal activists set to enter not guilty plea in Abbotsford hog farm case

Animal rights activists expected to plead not guilty to charges, protest for Vancouver scheduled

Dennis Cholowski shows off a Jordan 2 Retro Just Don Blue sneaker, the type of shoe only a true sneakerhead would appreciate. (Facebook photo)
VIDEO: Chilliwack Chiefs alum Dennis Cholowski shows off ‘sneakerhead’ collection

The Detroit Red Wing has been spending his NHL paycheques building up an impressive closet of shoes

Health care employees take extensive precautions when working with people infected or suspected of having COVID-19. THE CANADIAN PRESS/Chris Young
WorkSafeBC disallows majority of COVID-19 job injury claims

Health care, social services employees filing the most claims

Most Read