Venerable Winnipeg retailer Warehouse One seeks to liquidate chain

Winnipeg-based Warehouse One Clothing Ltd. is insolvent and is seeking court protection to restructure its business as it prepares to close more than 120 stores across Canada.

The denim retailer, which operates the Warehouse One and Bootlegger banners, said in a news release Wednesday it has commenced proceedings under the Companies’ Creditors Arrangement Act “to allow for an orderly wind down of its operations.”

A pre-filing report prepared by Alvarez & Marsal Canada Inc., the appointed CCAA monitor, states Warehouse One Clothing has experienced financial and operational challenges in recent years that have negatively impacted its profitability and strained liquidity.

“It is a bit of a shock, but I also can’t say I’m surprised, because a lot of stuff has changed in the last few years.”

These challenges include declining foot traffic and sales arising from increased competition from a combination of low-cost retailers and online competitors, and operational challenges and losses arising following the company’s acquisition of longtime rival Bootlegger in April 2025.

The company recorded a net loss of approximately $15 million for its fiscal year ended Feb. 28, 2026, the report states. Its net loss for the prior fiscal year was around $6.5 million.

Warehouse One Clothing intends to return to court in the coming days to seek a further order approving the liquidation of its 128 retail stores across Alberta, British Columbia, Saskatchewan, Manitoba, Ontario, Newfoundland, Nova Scotia, New Brunswick and the Yukon.

That includes 95 Warehouse One locations, 25 Bootlegger locations and eight combination stores carrying both banners.

There are 14 Warehouse One stores in Manitoba, including four in Winnipeg (Kildonan Place, Garden City Shopping Centre, Outlet Collection and St. Vital Centre). There are two Bootlegger locations in the keystone province, both in the capital (St. Vital Centre and CF Polo Park).

Both banners also have an e-commerce presence in Canada.

At the Garden City location on Wednesday afternoon, a Warehouse One employee told a reporter they haven’t yet been notified of any changes, with the news making them a “little nervous.”

“I could be out of a job, but it’s fine, I’m used to things happening unexpectedly. You never know,” said the employee, who spoke on the condition of anonymity.

“It is a bit of a shock, but I also can’t say I’m surprised, because a lot of stuff has changed in the last few years.”

The staff member said it’s hard to say what’s exactly behind the company’s challenges, as they’ve seen online sales climbing and there is still foot traffic in the shop.

“I guess there’s too many people shopping online. I guess the retail presence is going by the wayside.”

“It’s very dependent on the store and location,” they said. “We might do really good one day. Then the next day, nothing.”

People passing by the Garden City store Wednesday said they were disappointed to hear the news.

“It’s sad,” said Kevin Richard. “I guess there’s too many people shopping online. I guess the retail presence is going by the wayside.”

The loss of any Winnipeg-based business is a bad thing, said Yillan Lalic, pointing to online giants Temu and Amazon as some of the players responsible for brick-and-mortar retail’s fall from grace.

“We always want more local (businesses) and to support your local businesses — so it’s kind of sad — hopefully, they stay,” said Lalic. “But if not, there’s probably other Winnipeg brands that will come through.”

In an affidavit included with court filings, an executive states Warehouse One was a profitable business until the first quarter of 2019.

“During and following the COVID-19 pandemic, Warehouse One’s performance began to deteriorate,” Shamsh Kassam, chief financial officer and senior vice-president at Stern Partners, said in the affidavit.

The document shows the company’s owners, other indirect shareholders or affiliates provided secured loans in the amount of $31.5 million since 2020, including about $20.5 million advanced since January 2025.

Despite the financial support, the company “has been unable to overcome industry headwinds and generate sufficient cash flow in the operation of its business,” according to the affidavit. It is facing “an acute liquidity crisis and is unable to satisfy its near-term obligations as they become due.”

Warehouse One Clothing employs 982 people, comprised of 579 part-time and 403 full-time non-unionized employees across Canada, the affidavit states. The number of employees in Manitoba, including head office, is 232.

“During and following the COVID-19 pandemic, Warehouse One’s performance began to deteriorate.”

The company’s retail business activities are conducted primarily in premises leased from third-party landlords, save for one retail store located in Kenora, Ont., which is in a building owned by Warehouse One.

Company founder Max Maryk opened the first Warehouse One on Henderson Highway in Winnipeg in 1977, before selling the chain in late 2002.

Known as “The Jean Store” to its customers, the chain became popular for its affordable, everyday denim and casual apparel for men and women.

Bootlegger was founded in 1971, and is a retailer of denim and casual apparel for men and women between the ages of 35 and 55.

— with files from Morgan Modjeski

aaron.epp@freepress.mb.ca