Sales dropped so dramatically at the Center du Rasoir in the first weeks of 2023 that they no longer even covered employee wages, according to the trustee on file.
The company specializing in knives, razors and small kitchen appliances declared bankruptcy on Wednesday and put the key under the door of regarding twenty stores. However, franchisees might continue their activities.
“The days of February, it was made that there were two, three buying customers per day. It did not even pay the salary of the employees on site, ”says José Roberge, at Roy Métivier Roberge trustees.
The Razor Center had filed for bankruptcy and insolvency protection before the holidays. Talks with a potential buyer broke down and the bank was no longer able to support the company in operating loss. As of December 2022, its accumulated debt with 90 suppliers amounted to $3.3 million.
“The drop in sales following the holidays has been drastic. The company was no longer able to pay its rents, which were too high in relation to turnover, and it was no longer even able to cover salaries”, explains Mr. Roberge. The rent cost alone was $200,000 per month.
Employees will be paid
Fierce competition from Amazon also contributed to the collapse of the banner, which had been operating for sixty years. In 2014, the Center du Rasoir had merged with Boutik Électrik and had some 80 stores.
The president of the company, Patrice Demers, former director of CHOI Radio X, is “completely devastated”, according to the trustee. It was not possible to reach him.
Head office employees were ordered to collect their belongings Wednesday noon and then leave the premises. Under the employee protection program, laid-off staff will receive their pay shortly, along with vacation accrued over the past six months and the equivalent of eight weeks’ pay, up to $8,500.
a sad day
“It’s a sad day for the workers. Many have many years of service to their credit,” reacted on Facebook Tony Filato, president of the UFCW Local 500 union.
Yesterday followingnoon, the Center du Rasoir website was inactive and announced an upcoming opening by Shopify. The trustee who now controls the assets was unable to explain this situation.
The Razor Center in brief
- Property of CDREM
- President : Patrice Demers
- Debt in December: 3,3 M$
- More than twenty shops closed
- More than 100 employees affected
- Nearly 90 creditors
