Business

Indigo website still offline nearly 1 week after cybersecurity incident

Published

2 years ago

February 14, 2023

Almost a week after being hit with an apparent cyberattack, book retailer Indigo’s website is still offline, leaving customers with more questions than answers.

The TSX-listed bookseller’s website went dark on Wednesday, Feb. 8. Indigo’s brick-and-mortar stores could not process any transactions that were not in cash, leaving anyone who wanted to return or buy an item using debit, credit or gift cards in the lurch.

Within hours, the company posted a message on its website, saying it “experienced a cybersecurity incident” and was communicating with customers via its social media channels.

Through the weekend, physical stores had regained most functionalities, except the ability to process returns after the company changed its in-store payment technology as part of its incident response.

But the website remains offline as of Tuesday afternoon, almost a week after it first went dark.

That’s bad news for the company, as it makes it impossible to process any new sales online. But it’s also bad news for customers, like Gabriel Lee, who ordered a gift for his girlfriend online last week that was scheduled to arrive last Friday; it’s now stuck in transit on Valentine’s Day, with no indication of when it might arrive.

“There’s absolutely no way I can tell if it’s coming, like, this week or next week,” he told CBC News in an interview. “There’s no timeline for it, so unfortunately, I’m going to just have to wait it out and see. And then see if they offer compensation … but I don’t think they will.”

Indigo said Tuesday in a statement posted to social media that customer debit and credit card information was not compromised.

The company has been relatively tight-lipped about what’s happened, but multiple cybersecurity companies interviewed by CBC News say the incident has all the hallmarks of what’s known as a ransomware attack. That’s the term for when hackers infiltrate a company’s internal systems, disable them, then demand a ransom to undo what they’ve done.

It’s a growing problem. Statistics Canada says ransomware attacks amounted to 11 per cent of all cyber security incidents in 2021 — the most recent year for which up to date data is available.

Growing problem

Grocery chain Sobeys was a recent high-profile victim, with the company being hit by a ransomware attack in November that left the chain unable to fill prescriptions at the its pharmacies for four days, while other in-store functions, like self-checkout machines, gift-card use and the redemption of loyalty points, were offline for about a week.

In its most recent quarterly earnings, the company said the incident cost it about $25 million.

Cybersecurity expert Cat Coode says it’s “very likely” that Indigo has been hit by something similar. The timing and duration of the outage suggests it’s something external, she says, as does the sheer number of systems involved, including payment and inventory systems both in store and online.

Cat Coode is the founder of cybersecurity firm Binary Tattoo. She says ransomware attacks are a growing nuisance for businesses. (One for the Wall, Inc. )

“The fact that we see two separate and distinct systems that have gone down is an indication that this is a malicious attack and not an accident that’s happened inside the company,” she said.

Regardless of the cause, the longer the outage stretches on the worse the damage will be, says Daniel Tsai, a lecturer in law and business technology at University of Toronto and Toronto Metropolitan University.

“It’s going to have an impact on their sales and reputation because consumers are really focused on the reliability of the site and if they can’t go on … guess what, they’re not going to come back,” he said in an interview. “The longer this goes on, the greater the punishment.”

While she’s confident the retailer is likely the victim of a ransomware attack, Coode is equally confident that it’s unlikely sensitive consumer information, such as credit-card data, was stolen.

“Because there hasn’t been an announcement that there has been a breach of personal information indicates likely that no one has taken the information out of the company,” she said.

“The minute you say the word ‘breach,’ you fired off the alarm — you have to notify the privacy commissioner.”

By law, Canadian companies that experience cybersecurity breaches where customer data is stolen are required to report the breach to the Office of the Privacy Commissioner of Canada “as soon as feasible.”

In a statement to CBC News, the commissioner’s office says it “is aware” of the situation at Indigo and is “in communication with the organization in order to obtain more information including a formal breach report, and to determine next steps.”

“I am not in a position to provide any more information about this matter at this time,” the spokesperson said on Friday.

CBC News reached out to the agency on Tuesday to see if that status has been updated.

Indigo spokesperson Melissa Perri said the company was continuing to work with third-party experts to investigate the situation and understand whether any customer data has been accessed.

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Business

Roots sees room for expansion in activewear, reports $5.2M Q2 loss and sales drop

Published

3 days ago

September 13, 2024

Anne Joseph

TORONTO – Roots Corp. may have built its brand on all things comfy and cosy, but its CEO says activewear is now “really becoming a core part” of the brand.

The category, which at Roots spans leggings, tracksuits, sports bras and bike shorts, has seen such sustained double-digit growth that Meghan Roach plans to make it a key part of the business’ future.

“It’s an area … you will see us continue to expand upon,” she told analysts on a Friday call.

The Toronto-based retailer’s push into activewear has taken shape over many years and included several turns as the official designer and supplier of Team Canada’s Olympic uniform.

But consumers have had plenty of choice when it comes to workout gear and other apparel suited to their sporting needs. On top of the slew of athletic brands like Nike and Adidas, shoppers have also gravitated toward Lululemon Athletica Inc., Alo and Vuori, ramping up competition in the activewear category.

Roach feels Roots’ toehold in the category stems from the fit, feel and following its merchandise has cultivated.

“Our product really resonates with (shoppers) because you can wear it through multiple different use cases and occasions,” she said.

“We’ve been seeing customers come back again and again for some of these core products in our activewear collection.”

Her remarks came the same day as Roots revealed it lost $5.2 million in its latest quarter compared with a loss of $5.3 million in the same quarter last year.

The company said the second-quarter loss amounted to 13 cents per diluted share for the quarter ended Aug. 3, the same as a year earlier.

In presenting the results, Roach reminded analysts that the first half of the year is usually “seasonally small,” representing just 30 per cent of the company’s annual sales.

Sales for the second quarter totalled $47.7 million, down from $49.4 million in the same quarter last year.

The move lower came as direct-to-consumer sales amounted to $36.4 million, down from $37.1 million a year earlier, as comparable sales edged down 0.2 per cent.

The numbers reflect the fact that Roots continued to grapple with inventory challenges in the company’s Cooper fleece line that first cropped up in its previous quarter.

Roots recently began to use artificial intelligence to assist with daily inventory replenishments and said more tools helping with allocation will go live in the next quarter.

Beyond that time period, the company intends to keep exploring AI and renovate more of its stores.

It will also re-evaluate its design ranks.

Roots announced Friday that chief product officer Karuna Scheinfeld has stepped down.

Rather than fill the role, the company plans to hire senior level design talent with international experience in the outdoor and activewear sectors who will take on tasks previously done by the chief product officer.

This report by The Canadian Press was first published Sept. 13, 2024.

Companies in this story: (TSX:ROOT)

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Business

Talks on today over HandyDART strike affecting vulnerable people in Metro Vancouver

Published

4 days ago

September 12, 2024

Anne Joseph

VANCOUVER – Mediated talks between the union representing HandyDART workers in Metro Vancouver and its employer, Transdev, are set to resume today as a strike that has stopped most services drags into a second week.

No timeline has been set for the length of the negotiations, but Joe McCann, president of the Amalgamated Transit Union Local 1724, says they are willing to stay there as long as it takes, even if talks drag on all night.

About 600 employees of the door-to-door transit service for people unable to navigate the conventional transit system have been on strike since last Tuesday, pausing service for all but essential medical trips.

Hundreds of drivers rallied outside TransLink’s head office earlier this week, calling for the transportation provider to intervene in the dispute with Transdev, which was contracted to oversee HandyDART service.

Transdev said earlier this week that it will provide a reply to the union’s latest proposal on Thursday.

A statement from the company said it “strongly believes” that their employees deserve fair wages, and that a fair contract “must balance the needs of their employees, clients and taxpayers.”

This report by The Canadian Press was first published Sept. 12, 2024.

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Business

Transat AT reports $39.9M Q3 loss compared with $57.3M profit a year earlier

Published

4 days ago

September 12, 2024

Anne Joseph

MONTREAL – Travel company Transat AT Inc. reported a loss in its latest quarter compared with a profit a year earlier as its revenue edged lower.

The parent company of Air Transat says it lost $39.9 million or $1.03 per diluted share in its quarter ended July 31.

The result compared with a profit of $57.3 million or $1.49 per diluted share a year earlier.

Revenue in what was the company’s third quarter totalled $736.2 million, down from $746.3 million in the same quarter last year.

On an adjusted basis, Transat says it lost $1.10 per share in its latest quarter compared with an adjusted profit of $1.10 per share a year earlier.

Transat chief executive Annick Guérard says demand for leisure travel remains healthy, as evidenced by higher traffic, but consumers are increasingly price conscious given the current economic uncertainty.

This report by The Canadian Press was first published Sept. 12, 2024.

Companies in this story: (TSX:TRZ)

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