Canada’s DavidsTea Plans Bankruptcy After Covid-19 Losses

Specialty tea store DavidsTea Inc. will seek protection from its creditors after Covid-19 shutdowns closed its shops and kept customers at home.

The Canadian chain is using the Companies’ Creditors Arrangement Act, with a hearing expected today in Québec Superior Court, and expects to file for Chapter 15 bankruptcy in the U.S., according to a company statement.

The financial collapse adds to the list of retailers that were already struggling, and then wound up in bankruptcy after the coronavirus pandemic drained sales. The company hadn’t paid rent from April according to a regulatory filing in mid-June. All of its ...