The mystery that hovered over Bizou for a few days is now solved. The company has officially announced the bankruptcy of its 45 stores which had been emptied and closed earlier this week.
Shopping center managers had not been warned. They were surprised to come across empty stores on Monday.
Bizou’s management had not given any sign of life since. Journalists went to the head office in Sainte-Marie, Beauce, but no one was there. The town mayor knew nothing.
The company founded in 1982 attributes its financial problems in particular to the increase in online sales and a “significant decrease in traffic in shopping centers”.
“Unfortunately, the consequences of the pandemic, such as the closure of stores for several months, increased operating costs and challenges in sourcing merchandise, have added additional pressure on liquidity,” added the statement written by the public relations firm Brouillard Communication.
The approximately 350 employees will all receive compensation through the Wage Earner Protection Program (PPS) of the Government of Canada, it is specified. PPS is an Ottawa program that provides salary and some vacation or commission pay, for example, to people whose employers are bankrupt.
The press release mentions that “the group’s other activities are not affected by this decision”, and that “Bizou will have to reposition its business model and focus on other sales channels”.
We also learn that founder Joey Labrecque died “suddenly” in April 2022, which was “a determining factor” for the future of the company.
Management chose not to grant any interviews.
The 45 stores were located in Quebec and New Brunswick.
The company had used the Bankruptcy and Insolvency Law in October 2020. It then had 86 points of sale in 4 provinces. In January 2021, the closure of 24 stores was announced. The liability was then $9.5 million.