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Canada  + Ontario  + Retail  | 
Discount electronics retailer Factory Direct will close all 14 of its stores as part of a bankruptcy application,

Factory Direct to Close All 14 Stores

Discount electronics retailer Factory Direct will close all 14 of its stores as part of a bankruptcy application, the company announced.

All of the stores are located in Ontario. The closures mark the end of an era for the chain, which has operated for about three decades and ranks among Canada’s largest discount retailers.

RLogistics Limited Partnership, which does business under the Factory Direct brand, has filed a notice of of intention to make a proposal under the Bankruptcy and Insolvency Act. An Ontario court has permitted the company to begin liquidating its assets, according to the Canadian Press.

According to CP, court documents show that the retailer wants to close the stores because its business is “no longer viable.”

Since the COVID-19 the company has experienced declining sales and increased overhead partly due to the current high inflationary environment, Factory Direct said in a news  release.

At one point, Factory Direct grew to 24 stores and several hundred employees

A.D. Hennick & Associates Inc. and Danbury Global Ltd. have been appointed to conduct a chain-wide liquidation sale of televisions, smartphones, computers, major appliances and other items. Alex Hennick, president of A.D. Hennick, called the closures a “shame” considering the retailer’s previous growth and history.

Photo: Factory Direct


Inside The Story

A.D. HennickDanbury Global

About Monte Stewart

Monte Stewart serves as Content Director - Canada for Connect Commercial Real Estate. Based in Vancouver, British Columbia, Monte provides daily news coverage of major Canadian commercial real estate markets, including Vancouver, Toronto, Montreal and Calgary. He has written about the real estate sector for various media outlets and Avison Young since the early 2000s. In addition, he has covered sports, general news and business for several leading wire services and publications, including The Canadian Press, The Associated Press, The Calgary Herald, The Globe and Mail, Research Money, The Daily Oil Bulletin, Natural Gas World and The Toronto Star. Monte is active in his community as a youth basketball coach and raises funds for such charitable causes as Movember.

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