Express to Close its Canadian Stores
Express plans to close all 17 of its stores in Canada and discontinue its Canadian operations. The Ohio-based chain sells men's and women's clothing and currently has 650 stores in the U.S., Canada and Puerto Rico. Express announced last week that it will close all of its Canadian locations as part of a restructuring, and has filed for protection from its creditors under the Companies' Creditors Arrangement Act — Canada's version of Chapter 11 bankruptcy proceedings in the U.S.
Total Retail's Take: Express isn't the first U.S. retailer that has had trouble connecting with our neighbors to the north. Target, Sears, Best Buy and others have all had their struggles in Canada, including Target closing all of its stores in the country. Express has had its problems domestically, and things weren't faring any better in Canada. The apparel retailer cited "the challenging Canadian retail environment, coupled with unfavourable exchange rates" as the reasons why it was discontinuing its operations in the country. Express isn't in a position to be taking annual losses in Canada as it waits to gain traction in the international market. The company is burdened with debt and cash strapped, so this move was a necessity.