Market Overview

Leading Retailer Stokes Inc. Initiates Restructuring to Drive Long Term Profitability and Growth

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MONTRÉAL, Feb. 18, 2020 /CNW Telbec/ - Stokes Inc. ("Stokes" or "the Company") announced today that the Company has initiated the process to reposition its business for future growth and profitability by filing a notice of intention to make a proposal to its creditors. The Company is pursuing this course of action to facilitate the implementation of its go-forward strategy that will secure the long-term viability of the Company in the best interest of its employees, customers and suppliers.

After many years of solid financial performance, Stokes, like most other retailers, is adapting to fundamental changes in the industry, including how customers shop. To better compete in today's retail environment, Stokes will be reducing its retail footprint in Canada and streamlining its head office operations. The Company will continue investing in its online business which has experienced material growth over the last few years.

Stokes will be closing its less profitable stores while maintaining the majority of its retail locations across Canada and its head office operations in Montreal, QC. Once the restructuring is completed, Stokes will continue to employ approximately 1000 Canadians.

The Company's management is confident that, through the restructuring process, Stokes will emerge as a healthier and more profitable business, well positioned for long term success to the benefit of all stakeholders.

About Stokes Inc.

Stokes Inc. is a leading tableware, kitchenware and home décor retailer founded in 1935. The Company operates its retail business from a total of 147 stores across Canada as well as from an online store. Stokes primarily sells its merchandise under the brands "Stokes", "thinkkitchen" and other private labels.

SOURCE Stokes Inc.

View original content: http://www.newswire.ca/en/releases/archive/February2020/18/c5994.html

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