A Canadian entrepreneur with a track record of retail turnarounds is launching a chain of tea shops across the U.S. and Canada, out of recently closed DavidsTea locations.
Doug Putman, the owner of Sunrise Records, is set to open 45 locations across nine Canadian provinces and six U.S. states this weekend.
Named T. Kettle, the chain will have about 250 employees when they open, which is expected to happen this Sunday, Nov. 1. And the chain hopes to expand beyond that.
Waylaid by the COVID-19 pandemic that walloped foot traffic to malls and stores, DavidsTea went into insolvency proceedings this summer and shortly after announced plans to close about 200 locations and focus more on selling tea online. The Montreal-based tea shop says it will still have 18 locations when all is said and done, but that’s a drastically reduced retail footprint.
The tea shop is just one of many retailers to have been hit hard by the pandemic including clothier Reitmans, fashion chain Le Château, outdoor gear sellers MEC and Sail, fashion chain Mendocino, the company that owns Ricki’s Cleo and Bootlegger, and shoe retailer Aldo.
But while the carnage is continuing in some sectors of retail, Putman sees an opportunity.
“When we found that they were filing for bankruptcy we were thinking about it, and then when they said they were closing all their stores, I started reaching out to landlords,” Putman told CBC News in an interview. “Sure enough everyone was pretty interested.”
Putman has a track record of turning around retail chains in sectors others think are doomed. In 2014, he purchased music store chain Sunrise Records. In 2017, he bought up the leases of 70 HMV locations across Canada when that chain went bust and converted them to Sunrise locations.
In 2019, he bought the HMV chain in its home market of Great Britain, and while several locations were closed, nearly 100 are still in operation. Then late last year he spent $10 million US to buy For Your Entertainment, a music, film and pop culture outlet that operates across the U.S.
Now he seems to be trying the same thing in the hot drink market.
Canadians consume about 500 million cups of tea a year. The country drinks about six times as many cups of coffee, Robert Carter says. (iStock/Getty Images)
“Everyone asked why would I buy a record chain as well, [but] we’ve always done well with the contrarian view so we’re sticking with that,” he said. “It’s definitely a tough time but there’s always opportunity in the tough times if you can see it.”
Putman says the chain will specialize in certified vegan, kosher and organic blends, and has an ethically sourced and sustainable supply chain.
Food industry consultant Robert Carter with StratonHunter says the plan is a “bold move” considering how niche the tea industry is. Canada is predominantly a coffee-drinking culture, with more than three billion cups consumed per year. Tea, meanwhile, is only about 500 million cups a year.
“It’s going to be a challenge for sure,” he said, adding that sales in the food category overall are only at about two-thirds of what they were before.
Carter says he assumes the rent on those locations must be extraordinarily advantageous. “His deals must be off-the-chart sweetheart deals,” he said.
Retail consultant Farla Efros, president of HRC Advisory, says while restaurants and retail are still hurting, sales of hot drinks such as coffee and tea are faring comparatively better because they are seen as badly needed escape from consumers wary of being locked up at home.
“People want to support local,” she said in an interview. “So people are still going out to coffee shops and get some air and clear their heads.”
Although she had no inside knowledge of the financial terms of the deal between Putman and his landlords, she suspects the endeavour is probably fairly low risk for him.
“He’s probably getting the real estate for dirt cheap, landlords are desperate at this point,” she said, adding that she would not be surprised if the rent on the locations is something like a percentage of sales.
And taking over former tea shops is smart because the infrastructure is likely already in place. “He just needs to paint the sign and turn the lights on,” she said. “He’s such an idea generator, and if anyone can do it he can do it,” Efros said.
TORONTO – Canada Goose Holdings Inc. says it has signed a deal that will result in the creation of its first eyewear collection.
The deal announced on Thursday by the Toronto-based luxury apparel company comes in the form of an exclusive, long-term global licensing agreement with Marchon Eyewear Inc.
The terms and value of the agreement were not disclosed, but Marchon produces eyewear for brands including Lacoste, Nike, Calvin Klein, Ferragamo, Longchamp and Zeiss.
Marchon plans to roll out both sunglasses and optical wear under the Canada Goose name next spring, starting in North America.
Canada Goose says the eyewear will be sold through optical retailers, department stores, Canada Goose shops and its website.
Canada Goose CEO Dani Reiss told The Canadian Press in August that he envisioned his company eventually expanding into eyewear and luggage.
This report by The Canadian Press was first published Sept. 19, 2024.
Almost seven years since news broke of an alleged conspiracy to fix the price of packaged bread across Canada, the saga isn’t over: the Competition Bureau continues to investigate the companies that may have been involved, and two class-action lawsuits continue to work their way through the courts.
Here’s a timeline of key events in the bread price-fixing case.
Oct. 31, 2017: The Competition Bureau says it’s investigating allegations of bread price-fixing and that it was granted search warrants in the case. Several grocers confirm they are co-operating in the probe.
Dec. 19, 2017: Loblaw and George Weston say they participated in an “industry-wide price-fixing arrangement” to raise the price of packaged bread. The companies say they have been co-operating in the Competition Bureau’s investigation since March 2015, when they self-reported to the bureau upon discovering anti-competitive behaviour, and are receiving immunity from prosecution. They announce they are offering $25 gift cards to customers amid the ongoing investigation into alleged bread price-fixing.
Jan. 31, 2018: In court documents, the Competition Bureau says at least $1.50 was added to the price of a loaf of bread between about 2001 and 2016.
Dec. 20, 2019: A class-action lawsuit in a Quebec court against multiple grocers and food companies is certified against a number of companies allegedly involved in bread price-fixing, including Loblaw, George Weston, Metro, Sobeys, Walmart Canada, Canada Bread and Giant Tiger (which have all denied involvement, except for Loblaw and George Weston, which later settled with the plaintiffs).
Dec. 31, 2021: A class-action lawsuit in an Ontario court covering all Canadian residents except those in Quebec who bought packaged bread from a company named in the suit is certified against roughly the same group of companies.
June 21, 2023: Bakery giant Canada Bread Co. is fined $50 million after pleading guilty to four counts of price-fixing under the Competition Act as part of the Competition Bureau’s ongoing investigation.
Oct. 25 2023: Canada Bread files a statement of defence in the Ontario class action denying participating in the alleged conspiracy and saying any anti-competitive behaviour it participated in was at the direction and to the benefit of its then-majority owner Maple Leaf Foods, which is not a defendant in the case (neither is its current owner Grupo Bimbo). Maple Leaf calls Canada Bread’s accusations “baseless.”
Dec. 20, 2023: Metro files new documents in the Ontario class action accusing Loblaw and its parent company George Weston of conspiring to implicate it in the alleged scheme, denying involvement. Sobeys has made a similar claim. The two companies deny the allegations.
July 25, 2024: Loblaw and George Weston say they agreed to pay a combined $500 million to settle both the Ontario and Quebec class-action lawsuits. Loblaw’s share of the settlement includes a $96-million credit for the gift cards it gave out years earlier.
Sept. 12, 2024: Canada Bread files new documents in Ontario court as part of the class action, claiming Maple Leaf used it as a “shield” to avoid liability in the alleged scheme. Maple Leaf was a majority shareholder of Canada Bread until 2014, and the company claims it’s liable for any price-fixing activity. Maple Leaf refutes the claims.
This report by The Canadian Press was first published Sept. 19, 2024.
Companies in this story: (TSX:L, TSX:MFI, TSX:MRU, TSX:EMP.A, TSX:WN)
TORONTO – TD Bank Group, which is mired in a money laundering scandal in the U.S., says chief executive Bharat Masrani will retire next year.
Masrani, who will retire officially on April 10, 2025, says the bank’s, “anti-money laundering challenges,” took place on his watch and he takes full responsibility.
The bank named Raymond Chun, TD’s group head, Canadian personal banking, as his successor.
As part of a transition plan, Chun will become chief operating officer on Nov. 1 before taking over the top job when Masrani steps down at the bank’s annual meeting next year.
TD also announced that Riaz Ahmed, group head, wholesale banking and president and CEO of TD Securities, will retire at the end of January 2025.
TD has taken billions in charges related to ongoing U.S. investigations into the failure of its anti-money laundering program.
This report by The Canadian Press was first published Sept. 19, 2024.
