Shuttered store at corner of University Avenue and King Street in Vancouver shuts down for two weeks, says owner
Vancouver, B.C. — Menards shuttered its store at King and University Avenue this week after two weeks of operation, saying it would no longer be able to pay its rent and that it would need to make cuts to staff.
Menards, the country’s largest retailer, said it had not received any formal notice of the closure and was working with its bank to ensure it would be able meet its obligations.
“We’re not shutting down our business,” said Chris Kallos, president of Menards Canada.
“The reason we’re closing down our store is because we don’t have the funds to do the things that we need to do to make sure that our employees are happy.”
Menards had closed its downtown Vancouver location in January.
Kallas said the closure is being handled by a bank, and that his bank would be taking out a loan to cover the difference between what Menards owes the landlord and what the company owes the bank.
“That is the kind of thing we’re looking at right now,” Kallops said.
“Our bank is paying our rent, but we don´t have the money for the rest of the things we need.”
Kallots said he will work with his partners to find a new location for Menards.
Menard has been in a difficult situation since the company was forced to close its stores at Queen Street and Queen Street West in December after losing its liquor licence.
The store closed in February after failing to keep up with its rent payments.
Menands said it is still operating on a limited budget and will need to slash staffing to meet its rent obligations.
The company said in a statement that it has hired two outside financial advisers to help it “find a viable business plan.”
Menands is also working with the province on a $500,000 grant program to help local businesses.
The program will fund new office space and renovations, and Menards has also hired a manager to assist in its recruitment.
Menads new downtown store will open on April 30.
The closure comes after two years of losses at the store.
The downtown store closed last November after losing $500 per month on rent payments, and it was shuttered by the end of January, according to Menards website.
The retailer said it was “working diligently” to secure new leases, and will hire additional staff.