Shoppers in Cold Lake could soon lose two more clothing stores as Warehouse One officially begins court proceedings to shut down operations across Canada.

On Wednesday morning, a post shared in the Facebook group Cold Lake Questions and Answers by someone identifying themselves as the manager of the local Warehouse One location stated that managers from Warehouse One and Bootlegger were informed during a mandatory meeting that all stores across Canada would be closing.

The post said May 13 would be the final day customers can use gift cards or process returns. It also stated the company would return to court seeking approval to begin liquidation sales at all Warehouse One and Bootlegger locations.

Hours later, Warehouse One confirmed in a news release that it had entered proceedings under the Companies’ Creditors Arrangement Act (CCAA), allowing the company to begin an orderly wind down of its operations nationwide.

The retailer currently operates 128 stores under the Warehouse One and Bootlegger banners across Canada, including the two locations inside Tri City Mall in Cold Lake.

According to court filings, the Winnipeg-founded retailer has struggled with increased competition from online shopping and fast fashion retailers, along with operational challenges and declining sales.

The filing also revealed shareholders and affiliated companies had provided more than $39 million in financial support through loans since 2020. Despite cost-cutting efforts, the company’s financial condition continued to deteriorate.

“The shareholders are not prepared to advance further funds in the circumstances,” the court filing stated.

Warehouse One said it is now insolvent and unable to continue paying obligations such as rent and payroll costs.

Locally, many shoppers had already noticed signs of trouble. The former Warehouse One location on Main Street in Bonnyville quietly closed more than a month ago.

Residents may also remember the closure of Ricki’s in Cold Lake more than two years ago. Ricki’s was associated with the same retail group connected to Warehouse One and Bootlegger.

The Facebook post from the Cold Lake store manager thanked customers for their years of support and said staff would continue updating shoppers about potential liquidation sales and final operating dates.

If the closures proceed, it will mark another significant loss for brick-and-mortar retail shopping in the Lakeland region.