DavidsTea founder Herschel Segal retires

DavidsTea Inc. is keeping the company's leadership within the family as its co-founder retires from the company's board of directors and is replaced by his wife, the former CEO of insolvent clothing retailer Le Chateau.

The Montreal-based beverage company, which itself completed creditor proceedings, says principal investor Herschel Segal stepped down and was replaced as chairman by Jane Silverstone Segal. Also joining them on the board is their daughter Sarah, who is chief executive.

DavidsTea says its net income surged in its latest quarter despite a 19% drop in sales as it benefited from a large gain from its restructuring activities.

The 13-year-old company earned $75.5 million or $2.75 per diluted share in the second quarter, up from $2.61 million or 10 cents per share a year earlier when it closed all but 18 Canadian stores.

However, adjusted losses were $2.02 million or seven cents per share, compared with a loss of $1.72 million or six cents per share in the second quarter of 2020.

Revenues for the three months ended July 31 were $18.7 million, down from $23 million in the prior-year quarter when sales were totally online.