The American luxury retailer Nordstrom is closing its 13 stores in Canada. The brand’s e-commerce platform has already closed its doors on Thursday 2. The finalization of the in-store sale is scheduled for the end of June 2023.

In note, Nordstrom says the decision was made as part of initiatives to “drive long-term profitable growth and increase shareholder value.” “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 the Canadian business,” said CEO Erik Nordstrom.

A total of 2,500 people will be made redundant – including employees at the six Nordstrom stores, seven Nordstrom Rack stores and the site. “We would like to thank our team for their performance and dedication to serving customers in Canada. This decision will streamline our structure, strengthen our focus on our growth and profitability objectives and position us to create greater value for our shareholders.

Company expectations

Nordstrom Canada has already begun the liquidation of its business, obtaining an initial order from the Ontario Superior Court of Justice under the Trade Creditors Settlement Act (“CCAA”) to facilitate the orderly liquidation.

The company expects Nordstrom Canada to be deconsolidated from the company’s financial statements on the CCAA filing date. The company expects to report approximately $300 million to $350 million in pretax liquidation-related charges in the first quarter of fiscal 2023, primarily due to impairment of the company’s investment in the domestic operation.

The liquidation is expected to result in an approximately $400 million decline in the company’s total net revenue and a $35 million improvement in total operating income for fiscal 2023, compared to fiscal 2022. , excluding settlement fees.

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