The Bargain Shop on Prince Street is in the beginning stages of liquidation mode.
Store manager Jim MacInnis provided a telephone number to the company’s head office in Ontario but calls to that location were not returned prior to press deadline.
A source within the company who did not want to be identified, however, said the Truro store is one of 64 that are being closed across the country. The store is expected to be in operation until about mid-April.
Downtown Truro Partnership president Brent MacDonald expressed disappointment with the pending shutdown, in light of the rebuilding that has taken place in the downtown core following a number of other business closures in recent times.
“The current news of The Bargain Shop’s impending closure is most unfortunate and the Downtown Truro Partnership is very sorry to see a business close when the central core has been experiencing such a strong recovery,” MacDonald said.
“Downtown Truro, like other communities in Nova Scotia, has been affected by business closures but has managed to hold its head above water with new commercial investment and redevelopment.”
In order to maintain further recovery however, MacDonald suggested that continued infrastructure investment, focus on infill development, and the encouragement of a mixed-use town centre “are more important than ever to sustain businesses such as The Bargain Shop and to encourage a healthy and vibrant downtown.”
Information on the company’s website states that The Bargain Shop holdings were granted protection last month from its creditors by the Supreme Court of Ontario under the Companies’ Creditors Arrangement Act (CCAA) in Canada.
Although the protection is for an initial period ending March 28, the order states that it can be extended as required and approved by the court.
The order states that under CCAA protection, all proceedings on the part of The Bargain Shop’s creditors are stayed, while it restructures its business and financial affairs.
The company’s website says the CCAA proceedings are requested to provide time “to develop a strategic plan that will ensure the long term success and financial stability of The Bargain Shop.”
Any creditor related inquiries regarding the CCAA proceedings affecting The Bargain Shop should be directed to the Monitor’s Hotline at 1 (855) 941-1768 or (416) 941-1768.
The Bargain Shop is a successor to the former Canadian division of the Woolworth's retail chain, which started doing business in Canada in the 1920s.
The Bargain Shop in Truro is located in the former Woolworth store, which stood for many years as a local institution in the Hubtown, as in other towns and cities across the country.
Woolworth stores were bought out by The Bargain Shop during the late 1990s when the company’s U.S. corporate parent was looking to divest its general merchandise division.