Quebec's Dans un Jardin shutting down operations
After 35 years, Dans un Jardin and its subsidiary, Art de Vivre Fabrication, will cease operations "due to insurmountable financial difficulties," its management said Monday evening.
"The efforts undertaken in recent years have not paid off, so shareholders have come to the conclusion that the only possible option is to cease operations and proceed with an orderly liquidation," the bath products company said in a statement.
Management said the decision was based on increased competition, a "significant decrease" in sales and problems with its cost structure.
"Despite several initiatives put in place over the years in order to optimize the companies' activities and improve its profitability [it] has never managed to generate enough cash to support its cost structure," it said.
Management estimates however, that liquidation will be finished by January, 2019.
Dans un Jardin and Art de Vivre Fabrication will soon make a proposal to creditors, under the Bankruptcy and Insolvency Act.
The company tried to reduce overhead costs and close some less profitable stores, but that wasn't enough to keep the company afloat.
Dans un Jardin will begin to liquidate its stock and warehouse sales will be held in Quebec City, Longueuil and Gatineau.
The Quebec company has 26 stores, in addition to its manufacturing plant located in Boucherville, south of Montreal, since 2007. It has about 600 points of sale in Quebec and Canada.
