Nordstrom is backing out of Canada, closing all stores by June 2023

After about nine years in the Canadian market, Nordstrom Inc. has announced it will be shutting down all 13 stores this year.

As a result, the company’s Canadian website has ceased operations, which was effective immediately after the announcement was made earlier this week.

In addition, the wind-down of operations, including a liquidation sale, will be facilitated through a proceeding under the Companies’ Creditors Arrangement Act.

The sale will be subject to court approval at a hearing which is anticipated on or around March 20, 2023, says the company in a statement.

Nordstrom Canada operates six stores and seven rack stores. The company also employs about 2,500 people.

There are stores in Vancouver, Langley, Calgary, Edmonton, Ottawa, Toronto and Mississauga.

"We regularly review every aspect of our business to make sure that we are set up for success," said Erik Nordstrom, CEO of Nordstrom Inc.

"Despite our best efforts, we do not see a realistic path to profitability for the Canadian business. This decision will simplify our structure, intensify focus on our growth and profitability goals and position us to create greater value for our shareholders."

According to the company’s website, gift cards will be honored through to the end of the liquidation sale, however, no new cards will be issued after March 2.

The website has been taken down and orders placed through to March 2 will still be fulfilled.

Returns and exchanges will continue to be accepted in accordance with the company’s return policies through to March 17. After that, all sales are final and returns and exchanges will no longer be permitted.

The company expects the liquidation process to be completed in late June 2023.

This is the second US company to leave the Canadian market this year.

In mid-February, Bed Bath and Beyond announced it would be shutting down its 54 Canadian stores which will result in the loss of about 1,400 jobs.