Montreal-based retailer Groupe Dynamite Inc. has secured creditor protection under the Companies’ Creditors Arrangement Act (CCAA) as COVID-19 forces the company to "rapidly course-correct" its business strategy.  

"This pandemic has created a corporate tsunami," Executive Chairman Andrew Lutfy said in a release late Tuesday. "At the end of the day there are many things we control, but unfortunately not the impacts of this global pandemic. We've come to terms that the impacts of COVID-19 will be felt until such time as we can dance at weddings and crowd into office elevators, and have open borders without quarantine restrictions.”

Lutfy added that growth in the company’s online business was not enough to offset the impact from empty stores since the pandemic took hold.

“The last six months have accelerated a digital revolution and we must rapidly course-correct our business model to reflect this important shift,” Lutfy said.

The company, which operates over 300 stores in North America under its Dynamite and Garage brands, said its move into creditor protection will have no impact on head office employees and minimal impact on its 3,800 store employees. Groupe Dynamite noted that it will seek provisional recognition for its CCAA filing under Chapter 15 of the U.S. Bankruptcy Code.