REITMANS BUYING DALMYS
By Adnews Staff
Montreal-based women's wear retailer Reitmans (Canada) is taking over troubled rival Dalmys (Canada) for $1.4 million. The deal is subject to government approval and Dalmys successfully emerging from the Companies' Creditors Arrangement Act. It will give Reitmans over 700 stores across Canada, operating under eight banners. Advertising for both Dalmys and Reitmans is done in-house. Reitmans has four women's fashion chains: Smart Set, Studio Penningtons, Penningtons Wearhouse and Reitman's. Dalmys has Cactus, Antel, Dalmys L'Entrepot and Dalmys. Reitmans had sales of $333.3 million and profits of $12.5 million in its past fiscal year. The company has been profitable for the past four years. Dalmys had sales of $111 million last year and a net loss of $2.9 million. The company went under court protection from creditors earlier this month, with debts totalling $16.6 million. Reitmans plans to close some Dalmys stores and to restructure its debts. This is Reitmans' third acquisition of 1995. Earlier this year it took over bankrupt Pennington's Stores Ltd. It also bought a 21% stake in Labatt Communications which owns The Sports Network and Discovery Channel.