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Reitmans to take $4-mln writedown on Cassis store closures, conversions

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Womenswear retailer Reitmans (TSX:RET)(TSX:RET.A) said Wednesday it will take a $4-million third-quarter writedown as it closes its 25 Cassis stores, its banner aimed at women aged 40 to 60.

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.

In a statement, the company said: "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 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 two per cent of the group's annual sales.

Shares in the company were up 2 precent at $15.23 Wednesday afternoon.

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TSX:RET
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