Cover
Cover - shares | 9 Months Ended | |
Oct. 31, 2020 | Dec. 11, 2020 | |
Cover [Abstract] | ||
Entity Registrant Name | DAVIDsTEA Inc. | |
Entity Central Index Key | 0001627606 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Current Fiscal Year End Date | --02-02 | |
Entity Small Business | false | |
Entity Shell Company | false | |
Entity Emerging Growth Company | true | |
Entity Current Reporting Status | Yes | |
Document Period End Date | Oct. 31, 2020 | |
Entity Filer Category | Non-accelerated Filer | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2021 | |
Entity Ex Transition Period | true | |
Entity Common Stock Shares Outstanding | 26,230,907 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Interactive Data Current | Yes |
INTERIM CONSOLIDATED BALANCE SH
INTERIM CONSOLIDATED BALANCE SHEETS - CAD ($) $ in Thousands | Oct. 31, 2020 | Feb. 01, 2020 |
Current | ||
Cash | $ 21,925 | $ 46,338 |
Accounts and other receivables | 7,669 | 6,062 |
Inventories | 26,176 | 22,363 |
Income tax receivable | 222 | 1,196 |
Prepaid expenses and deposits | 13,400 | 4,542 |
Total current assets | 69,392 | 80,501 |
Property and equipment | 2,905 | 17,737 |
Intangible assets | 4,311 | 6,339 |
Right-of-use assets | 816 | 35,082 |
Total assets | 77,424 | 139,659 |
Current | ||
Trade and other payables | 3,621 | 20,794 |
Deferred revenue | 5,766 | 6,852 |
Liabilities subject to compromise | 71,653 | 0 |
Current portion of lease liabilities | 519 | 16,434 |
Total current liabilities | 81,559 | 44,080 |
Non-current portion of lease liabilities | 403 | 72,230 |
Total liabilities | 81,962 | 116,310 |
Commitments and contingencies | 0 | 0 |
Equity | ||
Share capital | 113,139 | 112,843 |
Contributed surplus | 1,761 | 1,577 |
Deficit | (120,836) | (92,278) |
Accumulated other comprehensive income | 1,398 | 1,207 |
Total equity (deficiency) | (4,538) | 23,349 |
Total liabilities and equity | $ 77,424 | $ 139,659 |
INTERIM CONSOLIDATED STATEMENTS
INTERIM CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS) (Unaudited) - CAD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2020 | Nov. 02, 2019 | Oct. 31, 2020 | Nov. 02, 2019 | |
INTERIM CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS) (Unaudited) | ||||
Sales | $ 26,225 | $ 39,493 | $ 81,497 | $ 122,925 |
Cost of sales | 15,399 | 18,139 | 47,409 | 53,430 |
Gross profit | 10,826 | 21,354 | 34,088 | 69,495 |
Selling, general and administration expenses | 7,120 | 30,670 | 35,883 | 90,254 |
Restructuring plan activities, net | (10,743) | 0 | 24,017 | 0 |
Results from operating activities | 14,449 | (9,316) | (25,812) | (20,759) |
Finance costs | 35 | 1,699 | 3,260 | 5,305 |
Finance income | (53) | (185) | (361) | (570) |
Net income (loss) | 14,467 | (10,830) | (28,711) | (25,494) |
Items to be reclassified subsequently to income: | ||||
Cumulative translation adjustment | 209 | (26) | 191 | (141) |
Other comprehensive earnings (loss), net of tax | 209 | (26) | 191 | (141) |
Total comprehensive income (loss) | $ 14,676 | $ (10,856) | $ (28,520) | $ (25,635) |
Net income (loss) per share: Basic | $ 0.55 | $ (0.42) | $ (1.10) | $ (0.98) |
Net income (loss) per share: Fully diluted | $ 0.54 | $ (0.42) | $ (1.10) | $ (0.98) |
Weighted average number of shares outstanding Basic | 26,214,573 | 26,068,435 | 26,143,963 | 26,048,239 |
Weighted average number of shares outstanding Fully diluted | 26,767,470 | 26,068,435 | 26,143,963 | 26,048,239 |
INTERIM CONSOLIDATED STATEMEN_2
INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - CAD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2020 | Nov. 02, 2019 | Oct. 31, 2020 | Nov. 02, 2019 | |
OPERATING ACTIVITIES | ||||
Net Income (loss) | $ 14,467 | $ (10,830) | $ (28,711) | $ (25,494) |
Items not affecting cash: | ||||
Depreciation of property and equipment | 237 | 1,313 | 1,781 | 3,997 |
Amortization of intangible assets | 420 | 517 | 1,503 | 1,372 |
Amortization of right-of-use assets | 189 | 2,938 | 2,882 | 9,153 |
Gain on modification of lease liabilities | (20,385) | 0 | (75,121) | 0 |
Liabilities subject to compromise | 2,633 | 0 | 71,653 | 0 |
Interest on lease liabilities | 29 | 1,699 | 3,216 | 5,305 |
Loss on disposal of property and equipment and right-of-use assets | 18 | 0 | 1,560 | 22 |
Impairment of property and equipment and right-of-use assets | 0 | 2,051 | 39,960 | 7,076 |
Stock-based compensation expense | 198 | 256 | 778 | 526 |
Sub-total | (2,194) | (2,056) | 19,501 | 1,957 |
Net change in other non-cash working capital balances related to operations | (9,822) | 6,842 | (39,397) | 6,272 |
Cash flows from (used in) operating activities | (12,016) | 4,786 | (19,896) | 8,229 |
FINANCING ACTIVITIES | ||||
Proceeds from issuance of common shares pursuant to exercise of stock options | 0 | 9 | 3 | 9 |
Payment of lease liabilities | (250) | (5,720) | (5,824) | (17,342) |
Cash flows used in financing activities | (250) | (5,711) | (5,821) | (17,333) |
INVESTING ACTIVITIES | ||||
Additions to property and equipment | (91) | (44) | (402) | (778) |
Additions to intangible assets | (3) | (485) | (320) | (2,148) |
Repayment (issuance) of loan from a Company controlled by an executive employee | 0 | (227) | 2,026 | (2,000) |
Cash flows from (used in) investing activities | (94) | (756) | 1,304 | (4,926) |
Decrease in cash during the period | (12,360) | (1,681) | (24,413) | (14,030) |
Cash, beginning of the period | 34,285 | 29,725 | 46,338 | 42,074 |
Cash, end of the period | 21,925 | 28,044 | 21,925 | 28,044 |
Cash paid for: | ||||
Interest- | 0 | 0 | 0 | 0 |
Income taxes (classified as operating activity) | 0 | 0 | 0 | 0 |
Cash received for: | ||||
Interest | 50 | 217 | 329 | 622 |
Income taxes (classified as operating activity)- | $ 0 | $ 2,780 | $ 870 | $ 2,948 |
INTERIM CONSOLIDATED STATEMEN_3
INTERIM CONSOLIDATED STATEMENTS OF EQUITY (Unaudited) - CAD ($) $ in Thousands | Total | Share Capital [Member] | Contributed Surplus [Member] | Deficit [Member] | Accumulated Other Comprehensive Income [Member] |
Balance, amount at Feb. 02, 2019 | $ 54,123 | $ 112,519 | $ 1,400 | $ (61,293) | $ 1,497 |
Statement [Line Items] | |||||
Net loss for the nine months ended November 2, 2019 | (25,494) | 0 | 0 | (25,494) | 0 |
Other comprehensive loss | (141) | 0 | 0 | 0 | (141) |
Total comprehensive loss | (25,635) | 0 | 0 | (25,494) | (141) |
Issuance of common shares | 9 | 13 | (4) | 0 | 0 |
Common shares issued on vesting of restricted stock units | (113) | 303 | (628) | 212 | 0 |
Stock-based compensation expense | 526 | 0 | 526 | 0 | 0 |
Balance, amount at Nov. 02, 2019 | 28,910 | 112,835 | 1,294 | (86,575) | 1,356 |
Balance, amount at Feb. 01, 2020 | 23,349 | 112,843 | 1,577 | (92,278) | 1,207 |
Statement [Line Items] | |||||
Net loss for the nine months ended November 2, 2019 | (28,711) | 0 | 0 | (28,711) | 0 |
Other comprehensive loss | 191 | 0 | 0 | 0 | 191 |
Total comprehensive loss | (28,520) | 0 | 0 | (28,711) | 191 |
Issuance of common shares | 3 | 4 | (1) | 0 | 0 |
Common shares issued on vesting of restricted stock units | (148) | 292 | (593) | 153 | 0 |
Stock-based compensation expense | 778 | 0 | 778 | 0 | 0 |
Balance, amount at Oct. 31, 2020 | $ (4,538) | $ 113,139 | $ 1,761 | $ (120,836) | $ 1,398 |
CORPORATE INFORMATION
CORPORATE INFORMATION | 9 Months Ended |
Oct. 31, 2020 | |
Note 1 - CORPORATE INFORMATION | The unaudited condensed interim consolidated financial statements of DAVIDsTEA Inc. and its subsidiary (collectively, the “Company”) for the three and nine-month periods ended October 31, 2020 were authorized for issue in accordance with a resolution of the Board of Directors on December 15, 2020. The Company is incorporated and domiciled in Canada and its shares are publicly traded on the Nasdaq Global Market under the symbol “DTEA”. The registered office is located at 5430 Ferrier St., Town of Mount-Royal, Québec, Canada, H4P 1M2. The Company is a branded retailer and growing mass wholesaler of specialty tea, offering a differentiated selection of proprietary loose-leaf teas, pre-packaged teas, tea sachets and tea-related gifts and accessories through its e-commerce platform at www.davidstea.com and in 18 Company-owned and operated retail stores in Canada. A selection of DAVIDsTEA products is also available in more than 2,500 grocery stores and pharmacies across Canada. The results of operations for the interim period are not necessarily indicative of the results of operations for the full year. Sales fluctuate from quarter to quarter. Sales are traditionally highest in the fourth fiscal quarter due to the year-end holiday season and tend to be lowest in the second and third fiscal quarters because of lower customer engagement during the summer months. In March 2020, the outbreak of a novel strain of coronavirus (“COVID-19”) was declared a global pandemic by the World Health Organization and on March 17, 2020, in response to the COVID-19 pandemic, the Company announced the temporary closure of all of its retail stores in Canada and the United States. On August 21, 2020, the Company re-opened 18 stores across Canada. The Company qualifies for the Canada Emergency Wage Subsidy (“CEWS”) under the COVID-19 Economic Response Plan of the Government of Canada. During the three and nine-month periods ended October 31, 2020, the Company recognized payroll subsidies of $1.4 million and $3.4 million, respectively under this wage subsidy program as a reduction in the associated wage costs which the Company incurred, which was recognized in Selling, general and administration expenses. On July 8, 2020, the Company announced that it was implementing a restructuring plan (the “Restructuring Plan”) under the Companies’ Creditors Arrangement Act On July 8, 2020, the Company obtained an Initial Order pursuant to the CCAA from the Québec Superior Court in order to implement the Restructuring Plan (the “Initial Order”). On July 9, 2020, the United States Bankruptcy Court for the District of Delaware entered an order in favor of the Company under Chapter 15 of the United States Bankruptcy Code. The order of the United States Bankruptcy Court provisionally recognized the proceedings under the CCAA and enforced the Initial Order, in effect providing protection to the Company from creditor action against its assets in the United States. As part of its Restructuring Plan and further to obtaining the Initial Order, the Company, on July 10, 2020, sent notices to terminate leases for 82 of its stores in Canada and all 42 of its stores in the United States. These lease terminations were effective on August 9, 2020. On July 16, 2020, the Company obtained an Amended and Restated Initial Order from the Québec Superior Court, extending to September 17, 2020 the application of the Initial Order. The Amended and Restated Initial Order also dealt with certain administrative matters, particularly with regards to the lease terminations. On July 30, 2020, the Company sent notices to terminate leases for an additional 82 of its stores in Canada. These lease terminations were effective on August 29, 2020. On September 17, 2020, the Québec Superior Court extended the stay of all proceedings against the Company to December 15, 2020 and issued a Claims Process Order establishing the claims procedures for the Company’s creditors under the CCAA. This Order, among other things set November 6, 2020 as the time by which creditors had to submit their claims to PwC, the Court-appointed Monitor. |
BASIS OF PREPARATION AND GOING
BASIS OF PREPARATION AND GOING CONCERN UNCERTAINTY | 9 Months Ended |
Oct. 31, 2020 | |
Note 2 - BASIS OF PREPARATION and GOING CONCERN UNCERTAINTY | These unaudited condensed interim consolidated financial statements have been prepared in accordance with IAS 34, “Interim Financial Reporting” as issued by the International Accounting Standards Board (“IASB”). Accordingly, these financial statements do not include all of the financial statement disclosures required for annual financial statements and should be read in conjunction with the Company’s audited consolidated financial statements for the year ended February 1, 2020, which have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the IASB. In management’s opinion, the unaudited condensed interim consolidated financial statements reflect all the adjustments that are necessary for a fair presentation of the results for the interim period presented. These unaudited condensed interim consolidated financial statements have been prepared using the accounting policies and methods of computation as outlined in Note 3 of the consolidated financial statements for the year ended February 1, 2020, other than as disclosed in Note 3 below. Going Concern Uncertainty In December 2019, a novel strain of coronavirus, responsible for COVID-19, was first reported and was subsequently declared a pandemic by the World Health Organization in March 2020. The measures adopted by the federal, provincial and state governments in order to mitigate the spread of the outbreak required the Company to temporarily close all of its retail locations across North America effective March 17, 2020. On July 8, 2020, the Company announced that it was implementing the Restructuring Plan under applicable laws in both Canada and the United States in order to accelerate its transition to predominantly an online retailer and wholesaler of high-quality tea and accessories. As part of the Restructuring Plan, the Company sent notices to terminate leases for 82 of its stores in Canada and all 42 of its stores in the United States.On July 30, 2020, the Company sent notices to terminate leases for an additional 82 of its stores in Canada and on August 21, 2020, re-opened 18 of its stores throughout Canada. Although the Company continues to offer its products directly to consumers through its online store and in supermarkets and drugstores across Canada, it is unlikely that customers will purchase its products at previous volumes through these alternative channels. Furthermore, the duration and impact of the COVID-19 pandemic is unknown and may influence consumer shopping behavior and consumer demand including online shopping. Notwithstanding that the Company expects to emerge from the Restructuring Plan as a leaner organization, there is no assurance that the Restructuring Plan will be successful and that all relevant and required regulatory, creditor and court approvals will be obtained. For the three and nine-month periods ended October 31, 2020, the Company reported a net income of $14.5 million and incurred a net loss of $28.7 million, respectively. The Company’s current liabilities total $81.6 million as at October 31, 2020. As at October 31, 2020, the Company held cash and accounts and other receivables of $29.6 million. The Company does not currently have any third-party financing available with which to meet any future financial obligations. The Company’s ability to continue as a going concern is dependent on its ability to stabilize its business from unfavorable trend lines, and by focusing on how to grow its product portfolio including sales and customer service execution. The Company expects to restructure its operations to successfully emerge with a leaner, more sustainable physical presence that complements a growing world-class online and grocery business, supported by a right-sized support organization. Management believes that there is material uncertainty surrounding the Company’s ability to execute the strategy necessary to return to profitability in the current environment, including the unpredictability surrounding the recovery from the COVID-19 pandemic, changes in consumer behavior and the ability to successfully emerge from the Restructuring Plan. As a result, these events and conditions indicate that a material uncertainty exists that raises substantial doubt about the Company’s ability to continue as a going concern and, therefore, realize its assets and discharge its liabilities in the normal course of business. These interim condensed consolidated financial statements have been prepared on a going concern basis, which assumes the Company will continue its operations for the foreseeable future and will be able to realize its assets and discharge its liabilities and commitments in the normal course of business. These interim condensed consolidated financial statements as at and for the three and nine-month periods ended October 31, 2020 do not include any adjustments to the carrying amounts and classification of assets, liabilities and reported expenses that may otherwise be required if the going concern basis was not appropriate. Such adjustments could be material. |
CHANGES IN ACCOUNTING POLICIES
CHANGES IN ACCOUNTING POLICIES | 9 Months Ended |
Oct. 31, 2020 | |
Note 3 - CHANGES IN ACCOUNTING POLICIES | Recently Issued Accounting Pronouncements On May 28, 2020, the IASB issued an amendment to IFRS 16, “Leases” to make it easier for lessees to account for COVID-19-related rent concessions such as rent holidays and temporary rent reductions. The amendment exempts lessees from having to consider individual lease contracts to determine whether rent concessions occurring as a direct consequence of the COVID-19 pandemic are lease modifications and allows lessees to account for such rent concessions as if they were not lease modifications. It applies to COVID-19-related rent concessions that reduce lease payments due on or before June 30, 2021. The amendment is effective as of June 1, 2020 but can be applied immediately in any financial statements—interim or annual—not yet authorized for issue. The Company applied the practical expedient to all rent concessions meeting the criteria as set out in the amendment, as of February 2, 2020. With respect to rent concessions not meeting the definition of a lease modification, the Company elected to account for such concessions by continuing to account for the lease liability and right-of-use asset using the rights and obligations of the existing lease and recognizing a separate lease payable in the period in which the allocated lease cash payment is due. As a result of the Initial Order obtained from the Québec Superior Court on July 8, 2020, any rent concessions provided by landlords are accordingly nullified. |
SIGNIFICANT ACCOUNTING JUDGEMEN
SIGNIFICANT ACCOUNTING JUDGEMENTS ESTIMATES AND ASSUMPTIONS | 9 Months Ended |
Oct. 31, 2020 | |
Note 4 - SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS | The preparation of condensed interim consolidated financial statements requires management to make estimates and assumptions using judgments that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense during the reporting period. Estimates and other judgments are continually evaluated and are based on management’s experience and other factors, including expectations about future events that are believed to be reasonable under the circumstances. Actual results may differ from those estimates. In preparing these unaudited condensed interim consolidated financial statements, critical judgments made by management in applying the Company’s accounting policies and the key sources of estimation uncertainty were the same as those referred to in Note 5 of the consolidated financial statements for the year ended February 1, 2020. As of February 2, 2020, the Company also considered the impacts related to COVID-19 and the Restructuring Plan to its use of estimates and judgments, as appropriate, within its unaudited interim condensed consolidated financial statements. Estimates and assumptions are subject to inherent uncertainty, which may result in actual amounts differing from reported amounts. Key sources of estimation uncertainty Lease termination The unaudited interim consolidated statement of income (loss) includes amounts for net Restructuring Plan activities (Note 10). As a result of the termination of leases pursuant to the Restructuring Plan, included in these net Restructuring Plan activities amounts are estimates the Company has made for allowed claims in the three and nine-months ended October 31, 2020 amounting to $6.7 million and $49.6 million, respectively. The estimate for the allowed claim is based on the Company’s best estimate and is based on the total undiscounted lease liability offset by an estimate of the losses that affected landlords will be able to successfully mitigate, informed by proofs of claim submitted by creditors. This provision is subject to significant estimation uncertainty, as proceedings are in a preliminary stage. Changes to the provision in future periods may be material and will be recorded through earnings. Recoverability and impairment of non-financial assets The temporary store closures as a result of COVID-19, as well as the permanent closure of a majority of our retail stores resulting from the Restructuring Plan, and the related reduction in operating income during fiscal 2020 are considered to be indicators of impairment and the Company performed an assessment of recoverability for the property and equipment and right-of-use assets associated with its retail locations. Key judgments in applying accounting principles Lease liabilities The temporary store closures as a result of COVID-19, and the resulting non-payment of rent for the months of April, May, June and part of July as well as the Restructuring Plan led the Company to make significant judgments with respect to the impacts of these events on the lease liabilities as of October 31, 2020. These include considerations such as the accounting for rent concessions, and the timing of termination of leases. For all leases terminated as a result of the Restructuring Plan and for which the notice period had expired, lease liabilities under IFRS 16 were determined to have been modified. |
INVENTORIES
INVENTORIES | 9 Months Ended |
Oct. 31, 2020 | |
Note - 5 INVENTORIES | During the three and nine-month periods ended October 31, 2020, inventories recognized as cost of sales amounted to $6,738 and $21,498, respectively [November 2, 2019 - $10,635 and $34,252, respectively]. During the three and nine-month periods ended October 31, 2020, the cost of inventory includes write-downs of $386 and $1,305, respectively [November 2, 2019 – reversal of write downs of $5 and $498, respectively] recorded as a result of net realizable value being lower than cost. October 31, February 1, 2020 2020 $ $ Finished goods 22,141 18,590 Goods in transit 1,294 2,059 Packaging 2,741 1,714 26,176 22,363 |
PROPERTY AND EQUIPMENT AND RIGH
PROPERTY AND EQUIPMENT AND RIGHT-OF-USE ASSETS | 9 Months Ended |
Oct. 31, 2020 | |
Note 6 - PROPERTY AND EQUIPMENT AND RIGHT-OF-USE ASSETS | An assessment of impairment indicators was performed which caused the Company to review the recoverable amount of the property and equipment, and right-of-use assets for certain cash generating units (“CGUs”) with an indication of impairment. CGUs reviewed included stores that were permanently closed as part of the Restructuring Plan and the remaining stores that are expected to perform below the Company’s previous projections. As a result, for the three and nine-month periods ended October 31, 2020, the Company recorded an impairment loss of nil and $13,167, respectively, related to property and equipment, [November 2, 2019 - nil and nil, respectively] and nil and $26,793, respectively, related to right-of-use assets [November 2, 2019 - 2,051 and 7,076, respectively]. These impairment losses are further broken down as follows: For the nine months ended October 31, 2020 Stores permanently Stores that closed remain open Total $ $ $ Property and equipment 12,966 201 13,167 Right-of-use assets 24,433 2,360 26,793 37,399 2,561 39,960 The impairment loss taken in the first quarter of 2020 related to the stores that remain open was determined by comparing the carrying amount of the CGU’s net assets with their respective recoverable amounts based on value in use for 7 of the 18 stores. This value in use of $791 [November 2, 2019 – $1,613] was determined based on management’s best estimate of expected future cash flows from use over the remaining lease terms. This determination considered historical experience as well as current economic conditions, including the expected reopening date and the timeframe to foot traffic recovery in those location, and was then discounted using a pre‑tax discount rate of 13.0% for the first quarter of 2020 [November 2, 2019 – 11.9%]. Depreciation and amortization expenses are broken down as follows: For the three months For the nine months ended October 31, 2020 ended October 31, 2020 Stores Stores permanently Stores that permanently Stores that closed remain open Head office Total closed remain open Head office Total $ $ $ $ $ $ $ $ Canada 6 170 250 426 2,246 1,214 873 4,333 US — — — — 330 — — 330 6 170 250 426 2,576 1,214 873 4,663 Depreciation expense, and impairment losses related to stores that remain open are reported in the consolidated statement of income (loss) and comprehensive income (loss) under Selling, general and administration expenses (Note 9). Impairment losses related to stores that were permanently closed as a result of the Company’s Restructuring Plan are reported in Restructuring plan activities, net (Note 10). For the three and nine-month periods ended November 2, 2019, the depreciation expense was $1,313 and $3,997 respectively; with $3,444 recorded in the Canada segment, $164 recorded in the U.S. segment, and $389 recorded in corporate selling, general and administration expenses. For Right-of-use assets, for the three and nine-month periods ended November 2, 2019, the depreciation expense was $2,938 and $9,153, respectively; with $7,538 recorded in the Canada segment, and $1,615 recorded in the U.S. segment. |
LIABILITIES SUBJECT TO COMPROMI
LIABILITIES SUBJECT TO COMPROMISE | 9 Months Ended |
Oct. 31, 2020 | |
Note 7 - LIABILITIES SUBJECT TO COMPROMISE | As a result of the Initial Order obtained on July 8, 2020 and subsequent amendments (Note 1), the payment of liabilities owing as of July 8, 2020 is stayed, and the outstanding liabilities, as well as any additional outstanding claims by creditors are subject to compromise pursuant to a plan of arrangement that is expected to be presented to creditors. Obligations for goods and services provided to the Company after the filing date of July 8, 2020 are discharged based on negotiated terms and conditions. Liabilities subject to compromise may be subject to future adjustments depending on Bankruptcy Court actions, further developments with respect to disputed claims, determination of secured status of certain claims, the determination as to the value of any collateral securing claims, proof of claims or other events. Estimate for allowed claims Trade and other payables Severance Costs Liabilities subject to compromise $ $ $ $ Balance as at February 1, 2020 and May 2, 2020 — — — — Reclassification of trade and other payables — 21,202 — 21,202 Additions 42,878 — 4,940 47,818 Balance as at August 1, 2020 42,878 21,202 4,940 69,020 Additions 16,937 419 — 17,356 Reversals (10,227 ) (3,380 ) (407 ) (14,014 ) Effect of foreign currency exchange (378 ) (331 ) — (709 ) Balance as at October 31, 2020 49,210 17,910 4,533 71,653 As a result of the termination of leases pursuant to the Restructuring Plan in the three and nine-month periods ended October 31, 2020, the Company has recorded an estimate for allowed claim in the amount of $6.7 million and $49.6 million, respectively, in Restructuring plan activities, net in the unaudited interim consolidated statement of income (loss) (Note 10). The estimate for the allowed claim is based on the Company’s best estimate and is determined based on the total undiscounted lease liability offset by an estimate of the losses that affected landlords will be able to successfully mitigate, informed by proofs of claim submitted by creditors. This provision is subject to significant estimation uncertainty, as proceedings are in a preliminary stage. Changes to the provision in future periods may be material and will be recorded through earnings. |
SHARE CAPITAL
SHARE CAPITAL | 9 Months Ended |
Oct. 31, 2020 | |
Note 8 - SHARE CAPITAL | Authorized An unlimited number of common shares. Issued and outstanding October 31, February 1, 2020 2020 $ $ Share Capital - 26,216,560 Common shares (February 1, 2020 - 26,086,162) 113,139 112,843 During the three and nine-month periods ended October 31, 2020, nil and 4,000 stock options, respectively were exercised for common shares for cash proceeds of nil and $3, respectively [November 2, 2019 – 12,000 and 12,000 stock options, respectively, for cash proceeds of $9 and $9, respectively]. In addition, during the three and nine-month periods ended October 31, 2020, 8,431 and 126,398 common shares, respectively [November 2, 2019 – 6,877 and 55,845 common shares respectively] were issued in relation to the vesting of restricted stock units (“RSU”), resulting in an increase in share capital of $20 and $292, net of tax [November 2, 2019 — $30 and $303, net of tax, respectively] and a reduction in contributed surplus of $39 and $593, respectively [November 2, 2019 — $67 and $628, respectively]. Stock-based compensation As at October 31, 2020, 1,088,729 [November 2, 2019, 1,744,529] common shares remain available for issuance under the 2015 Omnibus Plan. No stock options were granted during the three and nine-month periods ended October 31, 2020 and November 2, 2019. A summary of the status of the Company’s stock option plan and changes during the nine-month periods is presented below. For the nine months ended October 31, November 2, 2020 2019 Weighted Weighted average average Options exercise Options exercise outstanding price outstanding price # $ # $ Outstanding, beginning of year 76,350 8.96 137,540 7.17 Issued — — — — Exercised (4,000 ) 0.77 (12,000 ) 0.77 Forfeitures — — (35,001 ) 6.77 Outstanding, end of period 72,350 9.41 90,539 8.17 Exercisable, end of period 72,350 9.41 89,120 8.07 A summary of the status of the Company’s RSU plan and changes during the nine-month periods is presented below. For the nine months ended October 31, November 2, 2020 2019 Weighted Weighted average average RSUs fair value RSUs fair value outstanding per unit (1) outstanding per unit (1) # $ # $ Outstanding, beginning of year 749,522 2.17 270,976 5.26 Granted 1,177,222 1.44 804,710 1.93 Forfeitures (313,229 ) (1.67 ) (112,746 ) 3.46 Vested (126,398 ) (2.28 ) (78,345 ) 5.52 Vested, withheld for tax (128,760 ) (2.31 ) (59,134 ) 5.37 Outstanding, end of period 1,358,357 1.63 825,461 2.22 _____________ (1) Weighted average fair value per unit as at date of grant. During the three and nine-month periods ended October 31, 2020, the Company recognized a stock-based compensation expense of $198 and $778, respectively [November 2, 2019 — $256 and $526]. |
SELLING, GENERAL AND ADMINISTRA
SELLING, GENERAL AND ADMINISTRATION EXPENSES | 9 Months Ended |
Oct. 31, 2020 | |
Note 9 - SELLING, GENERAL AND ADMINISTRATION EXPENSES | For the three months ended For the nine months ended October 31, November 2, October 31, November 2, 2020 2019 2020 2019 $ $ $ $ Wages, salaries and employee benefits 3,496 15,690 15,879 46,999 Depreciation of property and equipment 237 1,313 1,781 3,997 Amortization of intangible assets 420 517 1,503 1,372 Amortization right-of-use asset 189 2,938 2,882 9,153 Impairment of property and equipment and right-of-use assets — 2,051 2,561 7,076 Loss on disposal of property and equipment — — — 22 Marketing expenses 1,209 1,618 2,848 3,974 IT expenses 736 1,080 2,190 3,059 Credit card fees 547 618 1,736 1,839 Professional fees 611 377 1,682 1,256 Stores supplies 178 1,862 1,254 3,487 Stock-based compensation 198 256 778 526 Government emergency wage subsidy (1,446 ) — (3,445 ) — Other selling, general and administration 745 2,350 4,234 7,494 7,120 30,670 35,883 90,254 |
RESTRUCTURING PLAN ACTIVITIES,
RESTRUCTURING PLAN ACTIVITIES, NET | 9 Months Ended |
Oct. 31, 2020 | |
Note - 10 RESTRUCTURING PLAN ACTIVITIES, NET | During the three and nine-month periods ended October 31, 2020, the Company, in connection with the termination or modification of leases pursuant to the Restructuring Plan, reduced its lease liabilities by $20.4 million and $75.1 million, respectively, resulting in a gain on the modification of lease liabilities. For the three months ended For the nine months ended October 31, October 31, 2020 2020 $ $ Gain on modification of lease liabilities (20,385 ) (75,121 ) Estimate for allowed claim 6,710 49,588 Loss on disposal of property and equipment and right-of-use assets 18 1,560 Impairment of property and equipment and right-of-use assets — 37,399 Severance costs (337 ) 4,832 Interest and penalties related to unpaid occupancy charges 146 1,147 Professional fees 856 1,829 Store closure related costs 2,249 2,783 Restructuring plan activities, net (10,743 ) 24,017 |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Oct. 31, 2020 | |
Note 11 - INCOME TAXES | Income tax expense is recognized based on management’s best estimate of the weighted average annual income tax rate expected for the full fiscal year. A reconciliation of the statutory income tax rate to the effective tax rate is as follows: For the three months ended For the nine months ended October 31, November 2, October 31, November 2, 2020 2019 2020 2019 % $ % $ % $ % $ Income tax provision (recovery) — statutory rate 26.8 3,878 26.8 (2,902 ) 26.8 (7,694 ) 26.8 (6,832 ) Non-deductible items 0.4 54 (0.7 ) 72 (0.6 ) 180 (0.6 ) 148 Unrecognized deferred income tax assets (27.2 ) (3,932 ) (26.1 ) 2,830 (26.2 ) 7,514 (26.2 ) 6,684 Income tax provision (recovery) — effective tax rate — — — — — — — — |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Oct. 31, 2020 | |
EARNINGS PER SHARE | |
Note 12 - EARNINGS PER SHARE | Basic earnings per share (“EPS”) amounts are calculated by dividing the net income (loss) for the period attributable to ordinary equity holders by the weighted average number of ordinary shares outstanding during the period. Diluted EPS amounts are calculated by dividing the net income (loss) attributable to ordinary equity holders by the weighted average number of ordinary shares outstanding during the period plus the weighted average number of ordinary shares that would be issued on conversion of all the dilutive potential ordinary shares into ordinary shares, unless these would be anti‑dilutive. The following reflects the income and share data used in the basic and diluted EPS computations: For the three months ended For the nine months ended October 31, November 2, October 31, November 2, 2020 2019 2020 2019 $ $ $ $ Net income (loss) for basic EPS 14,467 (10,830 ) (28,711 ) (25,494 ) Weighted average number of shares outstanding: Basic 26,214,573 26,068,435 26,143,963 26,048,239 Fully diluted 26,767,470 26,068,435 26,143,963 26,048,239 Net income (loss) per share: Basic 0.55 (0.42 ) (1.10 ) (0.98 ) Fully diluted 0.54 (0.42 ) (1.10 ) (0.98 ) |
RELATED PARTY DISCLOSURES
RELATED PARTY DISCLOSURES | 9 Months Ended |
Oct. 31, 2020 | |
RELATED PARTY DISCLOSURES | |
Note 13 - RELATED PARTY DISCLOSURES | Transactions with related parties are measured at the exchange amount, being the consideration established and agreed to by the related parties. During the three and nine-month periods ended October 31, 2020, the Company purchased merchandise for resale amounting to $50 and $76, respectively [November 2, 2019 – $33 and $48, respectively] and provided infrastructure and administrative services of $5 and $80, respectively [November 2, 2019 - $163 and $222, respectively] to a company controlled by one of its executive employees. The Company also spent nil and $53, respectively [November 2, 2019 — $96 and $164, respectively] for consulting services from a related party of the principal shareholder. As well during the three-month period ended November 2, 2019, the Company purchased a perpetual license rights to a reporting data model and associated intellectual property for $200 from a related party of the principal shareholder. Loan to a Company controlled by one of the Company’s executive employees During the second quarter of 2019, the Company entered into a secured loan agreement with Oink Oink Candy Inc., doing business as “Squish”, as borrower, and Rainy Day Investments Ltd. (“RDI”), as guarantor, pursuant to which the Company agreed to lend to Squish an amount of up to $4.0 million, amended on September 13, 2019 to reflect a maximum amount available under the facility of $2.0 million. RDI guaranteed all of Squish’s obligations to the Company and, as security in full for the guarantee, gave a movable hypothec (or lien) in favor of the Company on its shares of the Company. Squish is a company controlled by Sarah Segal, an officer of the Company. RDI, the principal shareholder of the Company, is controlled by Herschel Segal, Chairman, Interim Chief Executive Officer and a director of the Company. The Company and Squish previously entered into a Collaboration and Shared Services Agreement pursuant to which they collaborate on and share various services and infrastructure. During the first quarter of 2020, the loan of $2.0 million along with accrued interest of $45 were fully repaid. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 9 Months Ended |
Oct. 31, 2020 | |
SEGMENT INFORMATION | |
Note 14 - SEGMENT INFORMATION | An operating segment is a component of the Company that engages in business activities from which it may earn revenues and incur expenses. The Company has concluded that it has two reportable segments, Canada and the U.S., that derive their revenues from the online, retail and wholesale sale of tea, tea accessories and food and beverages. The Company’s Interim Chief Executive Officer (the chief operating decision maker or “CODM”) makes decisions about resources allocation and assesses performance at the country level, and for which discrete financial information is available. The Company derives revenue from the following products: For the three months ended For the nine months ended October 31, November 2, October 31, November 2, 2020 2019 2020 2019 $ $ $ $ Tea 22,989 30,038 69,004 92,770 Tea accessories 3,183 6,199 10,868 20,482 Food and beverages 53 3,256 1,625 9,673 26,225 39,493 81,497 122,925 Property and equipment, right-of-use assets and intangible assets by country are as follows: October 31, February 1, 2020 2020 $ $ Canada 8,032 52,116 US - 7,042 Total 8,032 59,158 Results from operating activities before corporate expenses per country are as follows: For the three months ended For the nine months ended October 31, 2020 October 31, 2020 Canada US Consolidated Canada US Consolidated $ $ $ $ $ $ Sales 20,280 5,945 26,225 61,276 20,221 81,497 Cost of sales 12,164 3,235 15,399 36,812 10,597 47,409 Gross profit 8,116 2,710 10,826 24,464 9,624 34,088 Selling, general and administration expenses (allocated) 2,765 487 3,252 14,173 3,845 18,018 Impairment of property and equipment and right-of-use assets — — — 2,561 — 2,561 Results from operating activities before corporate expenses 5,351 2,223 7,574 7,730 5,779 13,509 Selling, general and administration expenses (non-allocated) 3,868 15,304 Restructuring plan activities, net (10,743 ) 24,017 Results from operating activities 14,449 (25,812 ) Finance costs 35 3,260 Finance income (53 ) (361 ) Net Income (loss) before income taxes 14,467 (28,711 ) For the three months ended For the nine months ended November 2, 2019 November 2, 2019 Canada US Consolidated Canada US Consolidated $ $ $ $ $ $ Sales 30,909 8,584 39,493 95,439 27,486 122,925 Cost of sales 14,060 4,079 18,139 42,099 11,331 53,430 Gross profit 16,849 4,505 21,354 53,340 16,155 69,495 Selling, general and administration expenses (allocated) 16,057 4,433 20,490 45,628 13,712 59,340 Impairment of property and equipment and right-of-use assets 949 1,102 2,051 3,429 3,647 7,076 Results from operating activities before corporate expenses (157 ) (1,030 ) (1,187 ) 4,283 (1,204 ) 3,079 Selling, general and administration expenses (non-allocated) 8,129 23,838 Results from operating activities (9,316 ) (20,759 ) Finance costs 1,699 5,305 Finance income (185 ) (570 ) Net Loss before income taxes (10,830 ) (25,494 ) |
FINANCIAL RISK MANAGEMENT
FINANCIAL RISK MANAGEMENT | 9 Months Ended |
Oct. 31, 2020 | |
FINANCIAL RISK MANAGEMENT | |
Note 15 - FINANCIAL RISK MANAGEMENT | The Company’s activities expose it to a variety of financial risks, including risks related to foreign exchange, interest rate, liquidity and credit. Currency Risk — Foreign Exchange Risk Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. Given that some of its purchases are denominated in U.S. dollars, the Company is exposed to foreign exchange risk. The Company’s foreign exchange risk is largely limited to currency fluctuations between the Canadian and U.S. dollars. The Company is exposed to currency risk through its cash, accounts receivable and accounts payable denominated in U.S. dollars. Assuming that all other variables remain constant, a revaluation of these monetary assets and liabilities due to a 5% rise or fall in the Canadian dollar against the U.S. dollar would have resulted in an increase or decrease to net income (loss) in the amount of $587. The Company’s foreign exchange exposure is as follows: October 31, February 1, 2020 2020 US$ US$ Cash 470 1,928 Accounts and other receivables 889 455 Prepaid expenses and deposits 3,675 323 Trade and other payables 397 6,090 Liabilities subject to compromise 16,385 - The Company’s U.S. subsidiary’s transactions are denominated in U.S. dollars. The Company had no foreign exchange contracts outstanding as at October 31, 2020. Market Risk — Interest Rate Risk Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Financial instruments that potentially subject the Company to cash flow interest rate risk include financial assets and liabilities with variable interest rates and consist primarily of cash on hand. Liquidity Risk Liquidity risk is the risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities. On July 8, 2020, the Company announced it was implementing the Restructuring Plan in order to stabilize its operations and eventually generate free cash-flow to sustain the business. Considering the Company does not have access to financing and needs to operate the business and fund its restructuring activities, the Company’s approach to managing liquidity risk is to ensure, to the extent possible, that it will have sufficient liquidity to meet liabilities as they become due. The Company’s liquidity follows a seasonal pattern based on the timing of inventory purchases and capital expenditures. The Company is exposed to this risk mainly in respect of its trade and other payables, lease and purchase obligations. As at October 31, 2020, the Company had $21.9 million in cash. The Company expects to finance its working capital needs and investments in infrastructure through cash flows from operations and cash on hand. At October 31, 2020, Trade and other payables amounted to $3.6 million (February 1, 2020 - $20.8 million), liabilities subject to compromise amounted to $71.7 million and purchase obligations amounted to $12.3 million (February 1, 2020 - $11.5 million). As part of its Restructuring Plan, Liabilities subject to compromise, as disclosed in Note 7, are subject to a plan of arrangement to be proposed by the Company to its creditors. All trade and other payables from July 9, 2020 onwards are expected to be paid according to negotiated vendor terms. Refer to Note 2 for details with respect to the going concern uncertainty. Credit Risk The Company is exposed to credit risk resulting from the possibility that counterparties may default on their financial obligations to the Company. The Company’s maximum exposure to credit risk at the reporting date is equal to the carrying value of receivables. Accounts receivable primarily consist of receivables from retail customers who pay by credit card, receivables from wholesale channel sales, recoveries of credits from suppliers for returned or damaged products, and receivables from other companies for sales of products, gift cards and other services. Credit card payments have minimal credit risk and the limited number of corporate receivables is closely monitored. As a result, expected credit loss on these financial assets is not significant. |
COMPARATIVE FIGURES
COMPARATIVE FIGURES | 9 Months Ended |
Oct. 31, 2020 | |
Note 16 - COMPARATIVE FIGURES | Certain comparative figures have been reclassified to conform to the current year presentation in the consolidated statement of income (loss) with respect to the Company’s Restructuring Plan. |
INVENTORIES (Tables)
INVENTORIES (Tables) | 9 Months Ended |
Oct. 31, 2020 | |
Schedule of Inventory | October 31, February 1, 2020 2020 $ $ Finished goods 22,141 18,590 Goods in transit 1,294 2,059 Packaging 2,741 1,714 26,176 22,363 |
PROPERTY AND EQUIPMENT AND RI_2
PROPERTY AND EQUIPMENT AND RIGHT-OF-USE ASSETS (Tables) | 9 Months Ended |
Oct. 31, 2020 | |
Schedule of impairment losses | For the nine months ended October 31, 2020 Stores permanently Stores that closed remain open Total $ $ $ Property and equipment 12,966 201 13,167 Right-of-use assets 24,433 2,360 26,793 37,399 2,561 39,960 |
Sechedule of Depreciation and amortization | For the three months For the nine months ended October 31, 2020 ended October 31, 2020 Stores Stores permanently Stores that permanently Stores that closed remain open Head office Total closed remain open Head office Total $ $ $ $ $ $ $ $ Canada 6 170 250 426 2,246 1,214 873 4,333 US — — — — 330 — — 330 6 170 250 426 2,576 1,214 873 4,663 |
LIABILITIES SUBJECT TO COMPRO_2
LIABILITIES SUBJECT TO COMPROMISE (Tables) | 9 Months Ended |
Oct. 31, 2020 | |
Schedule of Liabilities subject to compromise | Estimate for allowed claims Trade and other payables Severance Costs Liabilities subject to compromise $ $ $ $ Balance as at February 1, 2020 and May 2, 2020 — — — — Reclassification of trade and other payables — 21,202 — 21,202 Additions 42,878 — 4,940 47,818 Balance as at August 1, 2020 42,878 21,202 4,940 69,020 Additions 16,937 419 — 17,356 Reversals (10,227 ) (3,380 ) (407 ) (14,014 ) Effect of foreign currency exchange (378 ) (331 ) — (709 ) Balance as at October 31, 2020 49,210 17,910 4,533 71,653 |
SHARE CAPITAL (Tables)
SHARE CAPITAL (Tables) | 9 Months Ended |
Oct. 31, 2020 | |
SHARE CAPITAL (Tables) | |
Summary of authorized, issued, and outstanding shares | October 31, February 1, 2020 2020 $ $ Share Capital - 26,216,560 Common shares (February 1, 2020 - 26,086,162) 113,139 112,843 |
Summary of stock option plan and periodic changes | For the nine months ended October 31, November 2, 2020 2019 Weighted Weighted average average Options exercise Options exercise outstanding price outstanding price # $ # $ Outstanding, beginning of year 76,350 8.96 137,540 7.17 Issued — — — — Exercised (4,000 ) 0.77 (12,000 ) 0.77 Forfeitures — — (35,001 ) 6.77 Outstanding, end of period 72,350 9.41 90,539 8.17 Exercisable, end of period 72,350 9.41 89,120 8.07 For the nine months ended October 31, November 2, 2020 2019 Weighted Weighted average average RSUs fair value RSUs fair value outstanding per unit (1) outstanding per unit (1) # $ # $ Outstanding, beginning of year 749,522 2.17 270,976 5.26 Granted 1,177,222 1.44 804,710 1.93 Forfeitures (313,229 ) (1.67 ) (112,746 ) 3.46 Vested (126,398 ) (2.28 ) (78,345 ) 5.52 Vested, withheld for tax (128,760 ) (2.31 ) (59,134 ) 5.37 Outstanding, end of period 1,358,357 1.63 825,461 2.22 |
SELLING GENERAL AND ADMINISTRAT
SELLING GENERAL AND ADMINISTRATION EXPENSES (Tables) | 9 Months Ended |
Oct. 31, 2020 | |
SELLING GENERAL AND ADMINISTRATION EXPENSES (Tables) | |
Schedule of selling, general and administrative expenses | For the three months ended For the nine months ended October 31, November 2, October 31, November 2, 2020 2019 2020 2019 $ $ $ $ Wages, salaries and employee benefits 3,496 15,690 15,879 46,999 Depreciation of property and equipment 237 1,313 1,781 3,997 Amortization of intangible assets 420 517 1,503 1,372 Amortization right-of-use asset 189 2,938 2,882 9,153 Impairment of property and equipment and right-of-use assets — 2,051 2,561 7,076 Loss on disposal of property and equipment — — — 22 Marketing expenses 1,209 1,618 2,848 3,974 IT expenses 736 1,080 2,190 3,059 Credit card fees 547 618 1,736 1,839 Professional fees 611 377 1,682 1,256 Stores supplies 178 1,862 1,254 3,487 Stock-based compensation 198 256 778 526 Government emergency wage subsidy (1,446 ) — (3,445 ) — Other selling, general and administration 745 2,350 4,234 7,494 7,120 30,670 35,883 90,254 |
RESTRUCTURING PLAN ACTIVITIES_2
RESTRUCTURING PLAN ACTIVITIES, NET (Tables) | 9 Months Ended |
Oct. 31, 2020 | |
RESTRUCTURING PLAN ACTIVITIES, NET (Tables) | |
Schedule of Restructuring plan activities, net | For the three months ended For the nine months ended October 31, October 31, 2020 2020 $ $ Gain on modification of lease liabilities (20,385 ) (75,121 ) Estimate for allowed claim 6,710 49,588 Loss on disposal of property and equipment and right-of-use assets 18 1,560 Impairment of property and equipment and right-of-use assets — 37,399 Severance costs (337 ) 4,832 Interest and penalties related to unpaid occupancy charges 146 1,147 Professional fees 856 1,829 Store closure related costs 2,249 2,783 Restructuring plan activities, net (10,743 ) 24,017 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 9 Months Ended |
Oct. 31, 2020 | |
INCOME TAXES (Tables) | |
Schedule of the reconciliation of the statutory income tax rate to the effective tax rate | For the three months ended For the nine months ended October 31, November 2, October 31, November 2, 2020 2019 2020 2019 % $ % $ % $ % $ Income tax provision (recovery) — statutory rate 26.8 3,878 26.8 (2,902 ) 26.8 (7,694 ) 26.8 (6,832 ) Non-deductible items 0.4 54 (0.7 ) 72 (0.6 ) 180 (0.6 ) 148 Unrecognized deferred income tax assets (27.2 ) (3,932 ) (26.1 ) 2,830 (26.2 ) 7,514 (26.2 ) 6,684 Income tax provision (recovery) — effective tax rate — — — — — — — — |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Oct. 31, 2020 | |
EARNINGS PER SHARE | |
Schedule of reconciliation of basic and diluted EPS | For the three months ended For the nine months ended October 31, November 2, October 31, November 2, 2020 2019 2020 2019 $ $ $ $ Net income (loss) for basic EPS 14,467 (10,830 ) (28,711 ) (25,494 ) Weighted average number of shares outstanding: Basic 26,214,573 26,068,435 26,143,963 26,048,239 Fully diluted 26,767,470 26,068,435 26,143,963 26,048,239 Net income (loss) per share: Basic 0.55 (0.42 ) (1.10 ) (0.98 ) Fully diluted 0.54 (0.42 ) (1.10 ) (0.98 ) |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 9 Months Ended |
Oct. 31, 2020 | |
SEGMENT INFORMATION | |
Schedule of revenue by product | For the three months ended For the nine months ended October 31, November 2, October 31, November 2, 2020 2019 2020 2019 $ $ $ $ Tea 22,989 30,038 69,004 92,770 Tea accessories 3,183 6,199 10,868 20,482 Food and beverages 53 3,256 1,625 9,673 26,225 39,493 81,497 122,925 |
Schedule of gross profit per country | October 31, February 1, 2020 2020 $ $ Canada 8,032 52,116 US - 7,042 Total 8,032 59,158 |
Schedule of property and equipment and intangible assets by country | For the three months ended For the nine months ended October 31, 2020 October 31, 2020 Canada US Consolidated Canada US Consolidated $ $ $ $ $ $ Sales 20,280 5,945 26,225 61,276 20,221 81,497 Cost of sales 12,164 3,235 15,399 36,812 10,597 47,409 Gross profit 8,116 2,710 10,826 24,464 9,624 34,088 Selling, general and administration expenses (allocated) 2,765 487 3,252 14,173 3,845 18,018 Impairment of property and equipment and right-of-use assets — — — 2,561 — 2,561 Results from operating activities before corporate expenses 5,351 2,223 7,574 7,730 5,779 13,509 Selling, general and administration expenses (non-allocated) 3,868 15,304 Restructuring plan activities, net (10,743 ) 24,017 Results from operating activities 14,449 (25,812 ) Finance costs 35 3,260 Finance income (53 ) (361 ) Net Income (loss) before income taxes 14,467 (28,711 ) For the three months ended For the nine months ended November 2, 2019 November 2, 2019 Canada US Consolidated Canada US Consolidated $ $ $ $ $ $ Sales 30,909 8,584 39,493 95,439 27,486 122,925 Cost of sales 14,060 4,079 18,139 42,099 11,331 53,430 Gross profit 16,849 4,505 21,354 53,340 16,155 69,495 Selling, general and administration expenses (allocated) 16,057 4,433 20,490 45,628 13,712 59,340 Impairment of property and equipment and right-of-use assets 949 1,102 2,051 3,429 3,647 7,076 Results from operating activities before corporate expenses (157 ) (1,030 ) (1,187 ) 4,283 (1,204 ) 3,079 Selling, general and administration expenses (non-allocated) 8,129 23,838 Results from operating activities (9,316 ) (20,759 ) Finance costs 1,699 5,305 Finance income (185 ) (570 ) Net Loss before income taxes (10,830 ) (25,494 ) |
FINANCIAL RISK MANAGEMENT (Tabl
FINANCIAL RISK MANAGEMENT (Tables) | 9 Months Ended |
Oct. 31, 2020 | |
FINANCIAL RISK MANAGEMENT | |
Summary of foreign exchange exposure | October 31, February 1, 2020 2020 US$ US$ Cash 470 1,928 Accounts and other receivables 889 455 Prepaid expenses and deposits 3,675 323 Trade and other payables 397 6,090 Liabilities subject to compromise 16,385 - |
CORPORATE INFORMATION (Details
CORPORATE INFORMATION (Details Narrative) - CAD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2020 | Nov. 02, 2019 | Oct. 31, 2020 | Nov. 02, 2019 | |
Statement [Line Items] | ||||
Selling, general and administrative expenses | $ 7,120 | $ 30,670 | $ 35,883 | $ 90,254 |
Canada Emergency Wage Subsidy [Member] | ||||
Statement [Line Items] | ||||
Selling, general and administrative expenses | $ 1,400 | $ 3,400 |
BASIS OF PREPARATION and GOIN_2
BASIS OF PREPARATION and GOING CONCERN UNCERTAINTY (Details Narrative) - CAD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2020 | Feb. 01, 2020 | |
Statement [Line Items] | |||
Total current liabilities | $ 81,559 | $ 81,559 | $ 44,080 |
Canada Emergency Wage Subsidy [Member] | |||
Statement [Line Items] | |||
Total current liabilities | 81,600 | 81,600 | |
Cash held and accounts other receivables | 29,600 | ||
Net Income (loss) | $ 14,500 | $ (28,700) |
SIGNIFICANT ACCOUNTING JUDGMENT
SIGNIFICANT ACCOUNTING JUDGMENTS, ESTIMATES AND ASSUMPTIONSY (Details Narrative) - CAD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Oct. 31, 2020 | Oct. 31, 2020 | |
Estimate for allowed claim | $ 6,700 | $ 49,600 |
INVENTORIES (Details)
INVENTORIES (Details) - CAD ($) $ in Thousands | Oct. 31, 2020 | Feb. 01, 2020 |
Finished goods | $ 22,141 | $ 18,590 |
Goods in transit | 1,294 | 2,059 |
Packaging | 2,741 | 1,714 |
Total | $ 26,176 | $ 22,363 |
INVENTORIES (Details Narrative)
INVENTORIES (Details Narrative) - CAD ($) | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2020 | Nov. 02, 2019 | Oct. 31, 2020 | Nov. 02, 2019 | |
Inventories recognized | $ 6,738 | $ 10,635 | $ 21,498 | $ 34,252 |
Inventory includes write-down | $ 386 | $ 5 | $ 1,305 | $ 498 |
PROPERTY AND EQUIPMENT AND RI_3
PROPERTY AND EQUIPMENT AND RIGHT OF USE ASSETS (Details) | 9 Months Ended |
Oct. 31, 2020CAD ($) | |
Statement [Line Items] | |
Impairment losses, Stores that remain open | $ 37,399 |
Impairment losses, Stores permanently closed | 2,561 |
Total impairment losses | 39,960 |
Right-of-use assets [Member] | |
Statement [Line Items] | |
Impairment losses, Stores that remain open | 24,433 |
Impairment losses, Stores permanently closed | 2,360 |
Total impairment losses | 26,793 |
Property and Equipment [Member] | |
Statement [Line Items] | |
Impairment losses, Stores that remain open | 12,966 |
Impairment losses, Stores permanently closed | 201 |
Total impairment losses | $ 13,167 |
PROPERTY AND EQUIPMENT AND RI_4
PROPERTY AND EQUIPMENT AND RIGHT OF USE ASSETS (Details 1) - CAD ($) | 3 Months Ended | 9 Months Ended |
Oct. 31, 2020 | Oct. 31, 2020 | |
Statement [Line Items] | ||
Depreciation and amortization expense, stores permanently closed | $ 6 | $ 2,576 |
Depreciation and amortization expense, stores that remain open | 170 | 1,214 |
Depreciation and amortization expense, head office | 250 | 873 |
Depreciation and amortization expense, total | 426 | 4,663 |
US [Member] | ||
Statement [Line Items] | ||
Depreciation and amortization expense, stores permanently closed | 0 | 330 |
Depreciation and amortization expense, stores that remain open | 0 | 0 |
Depreciation and amortization expense, head office | 0 | 0 |
Depreciation and amortization expense, total | 0 | 330 |
Canada [Member] | ||
Statement [Line Items] | ||
Depreciation and amortization expense, stores permanently closed | 6 | 2,246 |
Depreciation and amortization expense, stores that remain open | 170 | 1,214 |
Depreciation and amortization expense, head office | 250 | 873 |
Depreciation and amortization expense, total | $ 426 | $ 4,333 |
PROPERTY AND EQUIPMENT AND RI_5
PROPERTY AND EQUIPMENT AND RIGHT OF USE ASSETS (Details Narrative) - CAD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2020 | Nov. 02, 2019 | Oct. 31, 2020 | Nov. 02, 2019 | |
Statement [Line Items] | ||||
Impairment loss of property and equipment | $ 0 | $ 0 | $ 13,167 | $ 0 |
Pre-tax weighted average cost of capital rate | 13.00% | 11.90% | 13.00% | 11.90% |
Depreciation for the right of use assets | $ 2,938 | $ 9,153 | ||
Depreciation expense | 1,313 | 3,997 | ||
Corporate selling, general and administration expenses | $ 7,120 | 30,670 | $ 35,883 | 90,254 |
Impairment loss related to right of use assets | 0 | 2,051 | 26,793 | $ 7,076 |
Canada Segment [Member] | ||||
Statement [Line Items] | ||||
Depreciation for the right of use assets | 7,538 | |||
Depreciation expense | 3,444 | |||
United States Segment [Member] | ||||
Statement [Line Items] | ||||
Depreciation for the right of use assets | 1,615 | |||
Depreciation expense | $ 164 | |||
7 of the 18 stores [member] | ||||
Statement [Line Items] | ||||
Impairment loss related to right of use assets | $ 791 | $ 1,613 |
LIABILITIES SUBJECT TO COMPRO_3
LIABILITIES SUBJECT TO COMPROMISE (Details) - CAD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Oct. 31, 2020 | Jul. 30, 2020 | |
Trade and Other Payables [member] | ||
Statement [Line Items] | ||
Balance as at, beginning balance | $ 21,202 | $ 0 |
Reclassfication of trade and other payables | 21,202 | |
Additions | 419 | 0 |
Reversals | (3,380) | |
Effect of foreign currency exchange | (331) | |
Balance as at, ending balance | 17,910 | 21,202 |
Severance Costs [member] | ||
Statement [Line Items] | ||
Balance as at, beginning balance | 4,940 | 0 |
Reclassfication of trade and other payables | 0 | |
Additions | 0 | 4,940 |
Reversals | (407) | |
Effect of foreign currency exchange | 0 | |
Balance as at, ending balance | 4,533 | 4,940 |
Liabilities Subject To Compromise [Member] | ||
Statement [Line Items] | ||
Balance as at, beginning balance | 69,020 | 0 |
Reclassfication of trade and other payables | 21,202 | |
Additions | 17,356 | 47,818 |
Reversals | (14,014) | |
Effect of foreign currency exchange | (709) | |
Balance as at, ending balance | 71,653 | 69,020 |
Estimate For Allowed Claims [Member] | ||
Statement [Line Items] | ||
Balance as at, beginning balance | 42,878 | 0 |
Reclassfication of trade and other payables | 0 | |
Additions | 16,937 | 42,878 |
Reversals | (10,227) | |
Effect of foreign currency exchange | (378) | |
Balance as at, ending balance | $ 49,210 | $ 42,878 |
LIABILITIES SUBJECT TO COMPRO_4
LIABILITIES SUBJECT TO COMPROMISE (Details Narrative) - CAD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Oct. 31, 2020 | Oct. 31, 2020 | |
Statement [Line Items] | ||
Estimate for allowed claim | $ 6,700 | $ 49,600 |
Estimate For Allowed Claims [Member] | ||
Statement [Line Items] | ||
Estimate for allowed claim | $ 6,700 | $ 49,600 |
SHARE CAPITAL (Details)
SHARE CAPITAL (Details) - CAD ($) $ in Thousands | Oct. 31, 2020 | Feb. 01, 2020 |
SHARE CAPITAL (Tables) | ||
Share Capital - 26,216,560 Common shares (February 1, 2020 - 26,086,162) | $ 113,139 | $ 112,843 |
SHARE CAPITAL (Details 1)
SHARE CAPITAL (Details 1) - $ / shares | 9 Months Ended | |
Oct. 31, 2020 | Nov. 02, 2019 | |
Options outstanding | ||
Outstanding, beginning of year | 76,350 | 137,540 |
Issued | 0 | 0 |
Exercised | (4,000) | (12,000) |
Forfeitures | 0 | (35,001) |
Outstanding, end of period | 72,350 | 90,539 |
Exercisable, end of period | 72,350 | 89,120 |
Weighted average exercise price | ||
Weighted average exercise price, beginning | $ 8.96 | $ 7.17 |
Issued | 0 | 0 |
Exercised | 0.77 | 0.77 |
Forfeitures | 0 | 6.77 |
Weighted average exercise price, ending | 9.41 | 8.17 |
Weighted average exercise price, exercisable | $ 9.41 | $ 8.07 |
SHARE CAPITAL (Details 2)
SHARE CAPITAL (Details 2) - $ / shares | 9 Months Ended | |
Oct. 31, 2020 | Nov. 02, 2019 | |
RSUs outstanding | ||
Outstanding, beginning of year | 749,522 | 270,976 |
Granted | 1,177,222 | 804,710 |
Forfeitures | (313,229) | (112,746) |
Vested | (126,398) | (78,345) |
Vested, withheld for tax | (128,760) | (59,134) |
Outstanding, end of year | 1,358,357 | 825,461 |
Weighted average fair value per unit | ||
Outstanding, beginning of year | $ 2.17 | $ 5.26 |
Granted | 1.44 | 1.93 |
Forfeitures | (1.67) | 3.46 |
Vested | (2.28) | 5.52 |
Vested, withheld for tax | (2.31) | 5.37 |
Outstanding, end of year | $ 1.63 | $ 2.22 |
SHARE CAPITAL (Details Narrativ
SHARE CAPITAL (Details Narrative) - CAD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2020 | Nov. 02, 2019 | Oct. 31, 2020 | Nov. 02, 2019 | |
Statement [Line Items] | ||||
Stock-based compensation expense | $ 198 | $ 256 | $ 778 | $ 526 |
Stock options exercised, shares | 0 | 12,000 | 4,000 | 12,000 |
Proceeds from stock options exercised | $ 0 | $ 9 | $ 3 | $ 9 |
Common shares issued on vesting of restricted stock units, value | $ (148) | $ (113) | ||
Restricted Stock Units (RUS) [Member] | ||||
Statement [Line Items] | ||||
Common shares issued on vesting of restricted stock units, shares | 8,431 | 6,877 | 126,398 | 55,845 |
Common shares issued on vesting of restricted stock units, value | $ 20 | $ 30 | $ 292 | $ 303 |
Options [member] | ||||
Statement [Line Items] | ||||
Reduction in the contributed surplus | $ 39 | $ 67 | $ 593 | $ 628 |
2015 Omnibus Plan [Member] | ||||
Statement [Line Items] | ||||
Maximum number of shares available for issuance | 1,088,729 | 1,744,529 |
SELLING GENERAL AND ADMINISTR_2
SELLING GENERAL AND ADMINISTRATION EXPENSES (Details) - CAD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2020 | Nov. 02, 2019 | Oct. 31, 2020 | Nov. 02, 2019 | |
SELLING GENERAL AND ADMINISTRATION EXPENSES (Tables) | ||||
Wages, salaries and employee benefits | $ 3,496 | $ 15,690 | $ 15,879 | $ 46,999 |
Depreciation of property and equipment | 237 | 1,313 | 1,781 | 3,997 |
Amortization of intangible assets | 420 | 517 | 1,503 | 1,372 |
Amortization right-of-use asset | 189 | 2,938 | 2,882 | 9,153 |
Impairment of property, equipment and right-of-use assets | 0 | 2,051 | 2,561 | 7,076 |
Loss on disposal of property and equipment | 0 | 0 | 0 | 22 |
Marketing Expenses | 1,209 | 1,618 | 2,848 | 3,974 |
IT expenses | 736 | 1,080 | 2,190 | 3,059 |
Credit card fees | 547 | 618 | 1,736 | 1,839 |
Professional fee | 611 | 377 | 1,682 | 1,256 |
Stores Supplies | 178 | 1,862 | 1,254 | 3,487 |
Stock-based compensation | 198 | 256 | 778 | 526 |
Government wage subsidy | (1,446) | 0 | (3,445) | 0 |
Other selling, general and administration | 745 | 2,350 | 4,234 | 7,494 |
Selling, general and administrative expense | $ 7,120 | $ 30,670 | $ 35,883 | $ 90,254 |
RESTRUCTURING PLAN ACTIVITIES N
RESTRUCTURING PLAN ACTIVITIES NET (Details) - CAD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Oct. 31, 2020 | Oct. 31, 2020 | |
Gain on modification of lease liabilities | $ (20,385) | $ (75,121) |
Estimate for allowed claim | 6,700 | 49,600 |
Loss on disposal of property and equipment and right-of-use assets | 18 | 1,560 |
Impairment of property and equipment and right-of-use assets | 37,399 | |
Severance costs | (337) | 4,832 |
Interest and penalties related to unpaid occupancy charges | 146 | 1,147 |
Professional fees | 856 | 1,829 |
Store closure related costs | 2,249 | 2,783 |
Restructuring plan activities, net | $ (10,743) | $ 24,017 |
RESTRUCTURING PLAN ACTIVITIES_3
RESTRUCTURING PLAN ACTIVITIES, NET (Details Narrative) - CAD ($) | 3 Months Ended | 9 Months Ended |
Oct. 31, 2020 | Oct. 31, 2020 | |
Reduced in lease liabilities | $ 20,400 | $ 75,100 |
INCOME TAXES (Details)
INCOME TAXES (Details) - CAD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2020 | Nov. 02, 2019 | Oct. 31, 2020 | Nov. 02, 2019 | |
INCOME TAXES (Tables) | ||||
Income tax recovery - statutory rate (as a percent) | 26.80% | 26.80% | 26.80% | 26.80% |
Income tax provision - statutory rate | $ 3,878 | $ (2,902) | $ (7,694) | $ (6,832) |
Non-deductible items (as a percent) | 0.40% | (0.70%) | (0.60%) | (0.60%) |
Unrecognized deferred income tax asset (as a percent) | (27.20%) | (26.10%) | (26.20%) | (26.20%) |
Income tax provision (recovery) - effective tax rate | $ 0 | $ 0 | $ 0 | $ 0 |
Income tax provision (recovery) - effective tax rate (as a percent) | 0.00% | 0.00% | 0.00% | 0.00% |
Non-deductible items | $ 54 | $ 72 | $ 180 | $ 148 |
Unrecognized deferred income tax asset | $ (3,932) | $ 2,830 | $ 7,514 | $ 6,684 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - CAD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2020 | Nov. 02, 2019 | Oct. 31, 2020 | Nov. 02, 2019 | |
EARNINGS PER SHARE | ||||
Net loss for basic EPS | $ 14,467 | $ (10,830) | $ (28,711) | $ (25,494) |
Weighted average number of shares outstanding: | ||||
Basic | 26,214,573 | 26,068,435 | 26,143,963 | 26,048,239 |
Fully diluted | 26,767,470 | 26,068,435 | 26,143,963 | 26,048,239 |
Net income (loss) per share: Basic | $ 0.55 | $ (0.42) | $ (1.10) | $ (0.98) |
Net income (loss) per share: Diluted | $ 0.54 | $ (0.42) | $ (1.10) | $ (0.98) |
RELATED PARTY DISCLOSURES (Deta
RELATED PARTY DISCLOSURES (Details Narrative) - CAD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 31, 2020 | Nov. 02, 2019 | Oct. 31, 2020 | Nov. 02, 2019 | Aug. 01, 2020 | |
Statement [Line Items] | |||||
Merchandise purchased from related party | $ 50 | $ 33 | $ 76 | $ 48 | |
Infrastructure and administrative services | 5 | 163 | 80 | 222 | |
Perpetual license right | 200 | ||||
Consulting services | 0 | $ 96 | $ 53 | $ 164 | |
Revolving loan interest rate description | The Company agreed to lend to Squish an amount of up to $4 million, amended on September 13, 2019 to reflect a maximum amount available under the facility of $2 million. | ||||
Squish [Member] | |||||
Statement [Line Items] | |||||
Secured loan agreement amount | $ 4,000 | ||||
Accrued interest | $ 45 | ||||
Loan amount repaid | $ 2,000 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) - CAD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2020 | Nov. 02, 2019 | Oct. 31, 2020 | Nov. 02, 2019 | |
Statement [Line Items] | ||||
Sales | $ 26,225 | $ 39,493 | $ 81,497 | $ 122,925 |
Tea [Member] | ||||
Statement [Line Items] | ||||
Sales | 22,989 | 30,038 | 69,004 | 92,770 |
Tea Accessories [Member] | ||||
Statement [Line Items] | ||||
Sales | 3,183 | 6,199 | 10,868 | 20,482 |
Food And Beverages [Member] | ||||
Statement [Line Items] | ||||
Sales | $ 53 | $ 3,256 | $ 1,625 | $ 9,673 |
SEGMENT INFORMATION (Details 1)
SEGMENT INFORMATION (Details 1) - CAD ($) $ in Thousands | Oct. 31, 2020 | Feb. 01, 2020 |
Statement [Line Items] | ||
Property and equipment and intangible assets | $ 8,032 | $ 59,158 |
Canada Segment [Member] | ||
Statement [Line Items] | ||
Property and equipment and intangible assets | 8,032 | 52,116 |
United States Segment [Member] | ||
Statement [Line Items] | ||
Property and equipment and intangible assets | $ 0 | $ 7,042 |
SEGMENT INFORMATION (Details 2)
SEGMENT INFORMATION (Details 2) - CAD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2020 | Nov. 02, 2019 | Oct. 31, 2020 | Nov. 02, 2019 | |
Statement [Line Items] | ||||
Sales | $ 26,225 | $ 39,493 | $ 81,497 | $ 122,925 |
Cost of sales | 15,399 | 18,139 | 47,409 | 53,430 |
Gross profit | 10,826 | 21,354 | 34,088 | 69,495 |
Selling, general and administration expenses (allocated) | 3,252 | 20,490 | 18,018 | 59,340 |
Impairment of property, equipment and right-of-use assets | 0 | 2,051 | 2,561 | 7,076 |
Results from operating activities before corporate expenses | 7,574 | (1,187) | 13,509 | 3,079 |
Selling, general and administration expenses (non-allocated) | 3,868 | 8,129 | 15,304 | 23,838 |
Restructuring plan activities, net | (10,743) | 24,017 | ||
Results from operating activities | 14,449 | (9,316) | (25,812) | (20,759) |
Finance costs | 35 | 1,699 | 3,260 | 5,305 |
Finance income | (53) | (185) | (361) | (570) |
Net Income (loss) before income taxes | 14,467 | (10,830) | (28,711) | (25,494) |
Operating Segments [Member] | Canada Segment [Member] | ||||
Statement [Line Items] | ||||
Sales | 20,280 | 30,909 | 61,276 | 95,439 |
Cost of sales | 12,164 | 14,060 | 36,812 | 42,099 |
Gross profit | 8,116 | 16,849 | 24,464 | 53,340 |
Selling, general and administration expenses (allocated) | 2,765 | 16,057 | 14,173 | 45,628 |
Impairment of property, equipment and right-of-use assets | 0 | 949 | 2,561 | 3,429 |
Results from operating activities before corporate expenses | 5,351 | (157) | 7,730 | 4,283 |
Operating Segments [Member] | United States Segment [Member] | ||||
Statement [Line Items] | ||||
Sales | 5,945 | 8,584 | 20,221 | 27,486 |
Cost of sales | 3,225 | 4,079 | 10,597 | 11,331 |
Gross profit | 2,710 | 4,505 | 9,624 | 16,155 |
Selling, general and administration expenses (allocated) | 487 | 4,433 | 3,845 | 13,712 |
Impairment of property, equipment and right-of-use assets | 0 | 1,102 | 0 | 3,647 |
Results from operating activities before corporate expenses | $ 2,223 | $ (1,030) | $ 5,779 | $ (1,204) |
FINANCIAL RISK MANAGEMENT (Deta
FINANCIAL RISK MANAGEMENT (Details) - Estimate For Allowed Claims [Member] - CAD ($) $ in Thousands | Oct. 31, 2020 | Feb. 01, 2020 |
Statement [Line Items] | ||
Foreign exchange exposure, cash | $ 470 | $ 1,928 |
Foreign exchange exposure, accounts and other receivable | 889 | 455 |
Foreign exchange exposure, prepaid expense and deposits | 3,675 | 323 |
Foreign exchange exposure, Trade and other payable | 397 | 6,090 |
Foreign exchange exposure, Liabilities subject to compromise | $ 16,385 | $ 0 |
FINANCIAL RISK MANAGEMENT (De_2
FINANCIAL RISK MANAGEMENT (Details Narrative) - CAD ($) $ in Thousands | 9 Months Ended | |
Oct. 31, 2020 | Feb. 01, 2020 | |
Statement [Line Items] | ||
Cash | $ 21,925 | $ 46,338 |
Trade and other payables | 3,600 | 20,800 |
Purchase obligations | 12,300 | $ 11,500 |
Provisions amounted | 71,700 | |
Estimate For Allowed Claims [Member] | ||
Statement [Line Items] | ||
Increase (decrease) in net loss due to change in exchange rate | $ 587 |