Toronto
Court documents show the discount electronics and home goods retailer wanted to close its 14 stores in the province because it has found the business is “no longer viable.”
Discount retailer says business is ‘no longer viable’
The Canadian Press · Posted: Feb 16, 2024 11:43 AM EST | Last Updated: February 16
Vaughan, Ont.-based retailer Factory Direct says inflation has resulted in falling demand for its products. (Factory Direct handout/The Canadian Press)
An Ontario court has given Factory Direct permission to liquidate its stores as it begins winding down the business.
Court documents show the discount electronics and home goods retailer wanted to close its 14 stores in the province because it has found the business is “no longer viable.”
Factory Direct says it has experienced declining sales and increased costs that led to operating losses of about $1.7 million in the 11-month period that ended Nov. 30.
The Vaughan, Ont.-based retailer says inflation has resulted in falling demand for its products, which include many non-essential goods like televisions.
It also notes that it has seen increased competition as more online marketplaces and wholesalers launch direct-to-consumer businesses.
Factory Direct, which was founded in 1995, has about 200 employees who will be terminated as business operations wind down.
Corrections and clarifications|Submit a news tip|Report error
Source link
