Mayrand, the warehouse supermarket chain, has announced plans to seek bankruptcy protection under the Bankruptcy and Insolvency Act. Despite this significant move, the company’s stores remain open, and all staff members retain their positions for the time being. The pandemic has severely impacted sales in the food services sector, creating substantial financial pressure on the company, particularly in its merchant sales segment, which includes restaurants.
Reasons for Bankruptcy Protection
The decision to pursue bankruptcy protection is aimed at providing Groupe Mayrand Alimentation with the necessary time to stabilize its finances and explore various options to ensure business continuity. The firm Raymond Chabot Grant Thornton (RCGT) has been appointed to assist with the process.
Current Operations and Staffing
In a communication to customers via social media, Mayrand assured that, despite the ongoing challenges, its retail activities remain strong and profitable. Customers are encouraged to continue visiting the stores, as the company values their patronage.
Locations and Employment
- Mayrand operates stores in Anjou, Brossard, Laval, and Saint-Jérôme.
- The company employs approximately 350 individuals across its four Quebec locations.
Recent Developments in the Industry
In February, Collabor acquired part of Alimplus’s operations, a distributor for Mayrand, for $51.5 million. However, this transaction leads to the closure of the distribution center in Drummondville next December, resulting in the loss of 90 jobs.
Competitive Landscape
Sylvain Charlebois, a food industry expert, points to fierce competition that Mayrand faces. The company has positioned itself against giants like Collabor, Gordon, and Cisco, alongside discount liquidation-style stores that frequently attract customers. Charlebois notes that Costco Business locations are also popular among small retailers, offering bulk products that may detract from Mayrand’s clientele.
Membership Benefits
Unlike Costco, which requires a membership card for purchases, Mayrand does not. However, it offers a 1% discount through its Member Business card, aiming to enhance customer loyalty.
Company Background
Founded in 1914, Mayrand is led by CEO Pierre Lapointe, who has been with the company since 2019. The primary shareholder is Daniel Le Rossignol. The company’s long-standing presence in the market may help it navigate these turbulent times.
