Canada’s DavidsTea Files U.S. Bankruptcy, Hit by Pandemic

Specialty tea store DavidsTea Inc. filed for Chapter 15 bankruptcy protection in the latest example of a struggling retailer toppled by the fallout of Covid-19.

The filing in U.S. Bankruptcy Court in Delaware came after the chain sought protection under the Companies’ Creditors Arrangement Act in Canada. It held a hearing on Wednesday in Québec Superior Court, according to a company representative.

Shutdowns closed its shops and kept customers at home, resulting in the company skipping rent from April, according to a regulatory filing in mid-June.

DavidsTea expects to pursue talks with landlords about more favorable terms, and may terminate ...