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DavidsTea

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DAVIDsTEA
Company typePublic
TSX-V: DTEA
FoundedMontreal, Quebec, Canada (2008)
FoundersDavid Segal
Herschel Segal
HeadquartersMount Royal, Quebec, Canada
Number of locations
18[1]
Area served
Canada, US (formerly)
Key people
  • Herschel Segal (executive chairman)
  • Frank Zitella (COO/CFO)
  • Sarah Segal (CEO/CBO)
ProductsLoose-leaf tea, tea bags, teaware
Revenue41.2 million (2019)[2]
Websitedavidstea.com

DavidsTea (often stylized as DAVIDsTEA) (in French Les Thés DavidsTea) is a publicly traded Canadian specialty tea and tea accessory retailer based in Montreal, Quebec.[3] It is the largest Canadian-based specialty tea boutique in the country.

The company had 240 locations but by July 2020 required financial reorganization, which involved permanently closing all 42 U.S. stores, 166 stores in Canada, and focusing on its e-commerce and wholesale business.

History

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In 2008, David Segal and his cousin Herschel Segal founded DavidsTea's headquarters and main offices in Montreal, but opened its first store on Queen Street in Toronto the same year,[3] followed by its first Montreal store, in 2009.[4] In 2010, the company had stores located across Canada, opening its 50th store in Waterloo, Ontario in 2011 and, that November, opened its first store outside of Canada, in New York City. A growing boutique tea industry[5] expanded the company, by 2012, to more than 75 stores across North America, with over 150 varieties of tea.[6]

In 2013, former talkshow host Oprah Winfrey surprised the small company by promoting the brand in live shows, and later in O, The Oprah Magazine.[7]

The company conducted an initial public offering in the United States on June 5 2015, trading on the NASDAQ under stock ticker DTEA.[8][9]

In March 2016, co-founder David Segal resigned from DavidsTea.[10]

On May 24, 2016, Christine Bullen was appointed managing director of U.S. markets.[11] On December 8, 2016, Bullen was named interim president and CEO, effective February 1, 2017.[12]

On March 13, 2017, DavidsTea appointed Joel Silver as president and chief executive officer.[13] On June 14, 2018, Silver resigned as chief executive after the company's shareholders voted to elect a new group of directors to the company's board, including Herschel Segal, one of the company's original founders.[14]

In August 2018, DavidsTea announced plans to sell tea bags of their best-selling blends at Loblaw locations across Canada.[15]

In June 2020, DavidsTea announced that it has not paid rent at any of its store locations for three months as all its stores had been closed since March 17 due to the COVID-19 pandemic. It also indicated that it may pursue a formal restructuring.[16] The company announced on July 8 that it was filing for bankruptcy protection from its creditors in Canada to continue operations while it restructured, and planned to close down a significant number of stores. By that date, the company had obtained Chapter 15, Title 11, United States Code court protection from creditors in the US.[17][18] The next day, it was announced that 82 locations in Canada and all 42 locations in the United States would close, while more favourable leases were sought for the remaining 100 stores, with more to potentially close depending on the outcome of these talks with landlords.[19] By September, they had reduced the number of retail locations to 18.[20] Of 240 locations it had at the start of 2020, it permanently closed all 42 U.S. stores and 166 stores in Canada. It announced that it would focus on its e-commerce and wholesale businesses.[21]

In April 2023, DavidsTea voluntarily delisted its common shares from the Nasdaq Global Market and began trading under the TSX Venture Exchange in Canada.

References

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  1. ^ "where to find us". David's Teas. Retrieved July 14, 2023.
  2. ^ "DAVIDsTEA Reports Fourth Quarter and Full Year Fiscal 2019 Financial Results and Preliminary Financial Information for the 17-Week Period Ended May 30, 2020 | DavidsTea Inc". ir.davidstea.com.
  3. ^ a b "DavidsTea | About Us". Archived from the original on May 12, 2014. Retrieved May 8, 2014.
  4. ^ Budak, Jasmine (June 8, 2011). "Steeped in success". Canadian Business.
  5. ^ "From Starbucks to DavidsTea: Why big business is betting on Tea". CBC Radio.
  6. ^ "The DavidTtea experience". DavidsTea. Archived from the original on September 9, 2017. Retrieved January 19, 2016.
  7. ^ Bryan-Baynes, Elysia (April 12, 2013). "Montreal tea company gets plug from Oprah". Global News.
  8. ^ Schultz, Clark (June 5, 2015). "DAVIDsTEA pops on IPO open". Seeking Alpha.
  9. ^ Schultz, Clark (April 7, 2015). "David's Tea files for U.S. IPO". Seeking Alpha.
  10. ^ Shaw, Hollie (March 21, 2016). "DavidsTea co-founder, namesake, David Segal resigns as chain's brand ambassador". Financial Post.
  11. ^ "DAVIDsTEA Inc. Appoints Managing Director for U.S. Market and Opens 200th Store in North America". GlobeNewswire News Room. Retrieved January 10, 2018.
  12. ^ "BRIEF-DAVIDsTEA appoints Joel Silver as president and CEO". Reuters. 2017. Retrieved January 10, 2018.
  13. ^ "Release". March 13, 2017.
  14. ^ Marowits, Ross (June 14, 2018). "DavidsTea founder wrests control of retailer, pledges path to profitability". Financial Post.
  15. ^ "DavidsTea is coming soon to Loblaw grocery store shelves". Daily Hive Toronto. August 15, 2018. Retrieved August 17, 2018.
  16. ^ "DavidsTea Inc. may pursue formal restructure, hasn't paid rent in three months". CTV News. June 15, 2020. Retrieved July 8, 2020.
  17. ^ "DavidsTea closing 82 stores in Canada, exiting the U.S. market". BNN Bloomberg. July 8, 2020. Retrieved July 10, 2020.
  18. ^ "DavidsTea files for bankruptcy protection while negotiating with landlords". Global News. July 8, 2020. Retrieved July 8, 2020 – via The Canadian Press.
  19. ^ "DavidsTea to close 82 Canadian stores amid coronavirus pandemic". Global News. July 9, 2020. Retrieved July 9, 2020 – via The Canadian Press.
  20. ^ "Updates". www.davidstea.com.
  21. ^ Slaughter, Graham (July 30, 2020). "DavidsTea only reopening 18 stores as it shuts down 166 Canadian locations". CTV News. Archived from the original on July 31, 2020. Retrieved October 4, 2020.
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