The convenience store chain in TTC subway stations appears to be in trouble
Gateway Newstands, a large convenience store chain in Canada and the U.S. whose stores are commonly found in office buildings, malls and TTC subway stations, has just filed for bankruptcy.
Even as one of the largest and most commonly spotted stores in North America, Gateway has been struggling financially due to declining sales and slow foot traffic amidst the last two years' lockdown restrictions.
At least 40 stores have had to close down at the beginning of 2020, bringing the original number of 191 stores across Canada down to 150. A court filing shows that the company owes its creditors over $20 million, forcing them to file for creditor protection.
"We are emerging with more liabilities than our business can support," wrote Gateway CEO Mary Kelly in a letter to creditors.
"To continue supporting our franchisees and our business into the future, we have made the decision that we need to restructure our debts."
One of the leading culprits for Gateway Newstands has been a lack of foot traffic - a common factor for so many businesses to shut down over the past two years. And with factors such as high gas prices, high rent and labour costs, many stores have been unable to survive.
But there might be a light at the end of the tunnel. According to Export Development Canada, "Canadian businesses and consumers appear to have adjusted their operations and habits with each successive wave" and as restrictions continue to ease, "economic activity is [starting] to pick up."
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