Nordstrom Inc. says it is ending its Canadian operations and closing its 13 stores in the country.
The company, which launched in Canada in 2014, has six Nordstrom stores and seven Nordstrom Rack stores.
All stores will close and all of the company’s staff in Canada – about 2,330 people – will lose their jobs, the company announced Thursday.
In court filings, the company says Nordstrom’s Canadian business lost money every year it operated.
“We entered Canada in 2014 with a plan to build and maintain a long-term business here. Despite our best efforts, we do not see a realistic path to profitability for Canadian business,” the company said in a statement. communicated.
Pending approval by the Comptroller overseeing the liquidation under the Companies’ Creditors Arrangement Act, liquidation sales at all existing locations will begin around March 20.
Gift cards will be honored until the end of clearance for in-store purchases. No new gift cards can be purchased after Thursday.
The company’s Nordstrom.ca site ceased sales effective immediately. Any order placed online before Thursday will be fulfilled, but no new orders will be processed online. After March 17, all sales are final and returns and exchanges are no longer permitted.
Retail consultant Doug Stephens says the move suggests Nordstrom is just the latest department store chain to find its business model squeezed from all sides – by discount brands from below and luxury brands from up. at the top, as well as the rise of e-commerce.
“It’s no secret that the department store chain is, let’s just say, in a pretty fragile state,” he told CBC News.
It is the second major American chain to end its Canadian operations within weeks, after Bed Bath & Beyond announced in February that it close all of its 65 stores in Canada.
After years of slowing earnings, Stephens says Nordstrom’s U.S. parent is looking at the prospect of a recession in its home market and is taking the opportunity to cut anything that doesn’t add cash to its bottom line.
“It’s clearly a decision on Nordstrom’s part to reconsolidate – to tighten things up – and to prepare for what could be a very difficult year ahead,” he said.