Ontario electronics retailer Factory Direct is set to close all its stores after filing for bankruptcy. The chain, which has been operating for nearly 30 years, currently operates 14 locations across the province, including one in North York and another in Scarborough.
It specializes in products from brands like Apple, Cuisinart, and Samsung. A.D. Hennick & Associates Inc. is handling the liquidation of the company’s $10 million worth of stock. The brand has struggled to recover from pandemic-era losses, with declining sales and increased overhead since COVID-19.
The company, one of Canada’s largest privately-owned discount stores, offers savings of up to 80% off regular prices. The sale, which will begin at all locations on February 17, will provide customers with serious bargains on name-brand tech. This follows similar moves by homegrown brands Bad Boy furniture and Mastermind, which filed for bankruptcy and closed all their locations last month.
The retailer, which has about 200 employees, is facing operating losses of about $1.7 million due to declining sales and increased costs. The company claims inflation has led to falling demand for its products, including non-essential items like televisions, and increased competition from online marketplaces and wholesalers.
The closure of the stores is expected to result in a loss of about $200 million.
Source: CBC
Source: Blog TO
Source: Retail Insider
