Canadian tea chain David’s Tea is restructuring under the Companies’ Creditors Arrangement Act, the Canadian law that covers insolvent companies.
The Montreal-based chain will make its case for court protection from its creditors in a Quebec courtroom on Wednesday. It said in a press release it plans to take similar steps toward bankruptcy protection for its U.S. business.
The tea chain owns more than 220 locations across the U.S. and Canada, but intends to focus on being primarily an online seller of tea and other hot drinks and accessories.
The company says it “may terminate a significant number of our 222 leases as we seek to right-size our retail footprint.”
More to come.