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Three weeks in November and December 2021, the iconic Canadian dress chains bootleker, clio and rigues themselves – looked at the barrel of the “complex holiday period”, but blocking the ransomware cargo.
The attack occurred on November 23, but businesses were unable to regain access to their internal organizations until December 13 – a setback for forcing 221 affected stores to load heavy advertisements to accept the significant portion of the seasonal clothing.
Study Court documents The company, which is located in the Winnipeg-based Komark Holdings-three retailers-has been filed as part of bankruptcy activities that “brick and motor shops have lost about $ 8.2 million due to cyberchcasts.”
Helmet for clothing retailers
Shamsh Kassam’s affidavit provides a comprehensive window in the order of compulsion issues forced into the safety of the Gomark debtor: Ransomware attack, the prolonged impact of Kovit, conflict in the Middle East, and “Ultra-Ll-Ll-Cast.”
An Ontario High Court judge has issued a green lamp in recent weeks that the owner of the toys R ‘US and the Northern Reflections – Canadian Retail Billionaire Duck Putman – and the bootleter may go to a clothing.
But Canada’s retail and accessories industry – which earned $ 3.6 billion in 2024 – faces the same headaches that set a $ 61 million loan for Gomark.
Kassam, who lives in Vancouver, says:
“As a result of these changes, many Canadian retailers, including clothing retailers … have filed for security … Reidmans, Alto, Aeropostal, American Appar, Farever XXI, Target Canada, Express, Cheers Canada, Nartstrom Canada Canada, ”
Deep Canadian roots
Court documents also pronounce the history of three shops that have been part of the Canadian retail lands for decades.
Ricky was founded in Brandon in 1939 and often sells tops, sweaters, pants, dresses, blouses, blazers, outer dresses, denim and accessories. Cleo’s forerunner Irene Hill was founded in 1958.
“The Cleo Brand offers work clothes and ordinary clothes to women over 48 years of age,” writes Cassam. “Cleo, the largest retailer of women in Canada.
Bootleer was founded in 1971 in 1971 – “Tenim’s retailer, other normal clothing and accessories for men and women aged 35 to 55.”
In spite of deep Canadian roots, the Monitor’s report appointed by the court of Gomark said that 82 per cent of private label products manufactured for retailers is “obtained from foreign manufacturers, primarily located in China and Bangladesh.”
Those distribution chains will play a role in the luck of Komark.
Kassam writes, “Unfortunately, international conflicts in the Red Sea, some of the industries of the sellers in Bangladesh, and the railway and port strikes in 2024 caused more delays, and the seller lost relationships and sales.”
“This is, caused increased financial pressure on businesses.”
‘Consumer needs have changed’
Recent court proceedings are not the first experience of Gomark with bankruptcy. As a result of Govid locking, the company was pushed to debt security by 2020-it is revealed again after the sale to a company controlled by its primary shareholder.
But even after sale, Kasam writes that the more locked in 2020 has lost the black silver and Christmas sales of Bootleker, Cleo and Ricky.
Delays of the distribution chains caused by infection are also due to the sales table, which offers seasonal products “out of their target term”, which led to product markings.
“The Gov -19 infection has changed the need for remote work and the demand for work weeks, has changed, which has changed, which has previously created a significant portion of the businesses’ businesses,” writes Cassam.
Ransomware sent a shock through the business-shutting the shutters and an e-commerce site for two days and disabling the inventory in the next weeks.
“The consequences of the cyber incident are beyond this time,” writes Cassam.
“All the internal processes and organizations of the companies were lost or compromised by cyber incident, including (their) history and critical path, and these organizations were not recovered.”
Court documents suggest that the nature of the competition has changed drastically in the last four years.
“That is, a difficult economic environment has put significant financial pressure on traditional fashion retailers by the introduction of some of the low-cost fashion retailers, including Shayn and Temu.”
As of December 2024, Ricky, Cleo and Bootleker had about 2,056 hours and salary staff across Canada. Court proceedings do not tell them what the future is.
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