Duty-free shop on Canada-U.S. border in receivership as traffic plummets

A trip across the Canada-U.S. border isn't quite complete without at least a cursory browse through the nearest duty-free shop to see what staples (or, more likely, needless items) you can stock up on, tax-free.

The retailers, located in airports and at land crossings on both sides of the divide, are a boon for budget-conscious travellers with an eye for brand names, making them quite profitable private enterprises — that is, they were, until tourism between the two nations completely fell off.

Donald Trump's tariffs and disrespect for Canadian sovereignty have made political relations tense, with many Canadians now boycotting America and calling off any plans to head south of the border (the Canadian dollar absolutely tanking amid a recession and cost-of-living crisis certainly doesn't encourage taking a vacation, either).

As a result, nearly one million fewer people crossed into the States from Canada last month compared to the same time last year, and Canada is seeing a dip in U.S. arrivals, too. The sharp decline at ports of entry is taking a toll on the tourism sector, of course, but also on other industries, like duty-free retail.

The tax-free store at the Peace Bridge border crossing in Fort Erie, Ontario, has been the first, but likely won't be the last, to become financially untenable in this climate. It was hit so hard by the changes in travel patterns that it was forced into receivership this week, unable to cover operating expenses or pay back creditors.

According to the filing in the Ontario Superior Court of Justice, as reported on by the CBC on Monday, the 24-hour-a-day store owes up to $17 million in rent. This is despite it being situated at the second-busiest U.S.-Canada crossing and being run by Peace Bridge Duty Free Inc. for over 30 years.

A receiver will now take over the business's finances to ensure lenders and stakeholders are paid, which will likely result in liquidation, and could include the business's closure and/or sale in full to another entity.