March 2, 2023
Nordstrom Canada Retail, Inc., Nordstrom Canada Holdings, LLC, and Nordstrom Canada Holdings II, LLC (collectively, "Nordstrom Canada"), a fashion retailer that entered the Canadian marketplace in 2014, obtained CCAA protection on March 2. Nordstrom Canada currently operates 13 stores in Canada (seven being Nordstrom Rack stores) and employs approximately 2,330 employees. It has generated negative cash flows and losses during each year of operations since entering the Canadian market, excluding financial support from its US parent, which has enabled Nordstrom Canada to sustain operations. Since 2014, Nordstrom’s US parent and other US-based affiliates have provided Nordstrom Canada with approximately US$775 million in funding. The impact of high operating costs, stagnant sales growth, unfavourable exchange rates, the effects of the COVID-19 pandemic and lack of brand awareness have contributed to the overall poor financial performance of Nordstrom Canada. Following a review by Nordstrom US of Nordstrom Canada’s operations and financial performance, the board of directors of Nordstrom US determined to discontinue operational and financial support. A&M was appointed as Monitor. Osler is counsel for Nordstrom and Goodmans is counsel for the Monitor.
By Dina Milivojevic
