DavidsTea now says it was able to secure new, more favourable lease terms and conditions for 18 of its locations, which will reopen.
The company, which obtained creditor protection under the Companies Creditors Arrangement Act (CCAA), warned in mid-June that it could begin a formal restructuring depending on the outcome of its talks with landlords, who hadn't received rent from David's Tea for April, May and June.
"We believe that a select group of our best-performing stores, complementing our growing online and wholesale business model and supported by an entrepreneurial organization, will enhance DavidsTea's ability to emerge from the CCAA restructuring process as a more sustainable and resilient organization," stated company founder, chairman and interim CEO Herschel Segal.
The 18 stores are located in major shopping malls. Seven are in Quebec, five in Ontario and the rest in Alberta, British Columbia, Manitoba and New Brunswick.
"Our decision to reopen these select stores is consistent with our objective to create a leaner, more efficient company, positioned for long-term growth."