Once a hallmark of Canadian fashion, the brand that made sweatpants cool could soon be on the market.
What happened: Roots’ board has launched a review of the company that will include exploring a possible sale. The Canadian brand, which went public in 2017, has struggled with sluggish sales post-pandemic.
Since its IPO, Roots tried and failed to expand its retail footprint in the American market — filing for bankruptcy in the U.S. in 2020 — and has seen its stock slide 66%.
Catch-up: Roots has been trying to reclaim some of the cultural cachet that made its fleeces and sweatpants must-have pieces for years. It launched vintage pop-up stores in Toronto, signed ultra-cool Canadian fashion designer Joey Gollish as its creative director, and tapped Canadian actor Seth Rogen to be the face of its ad campaigns.
Why it matters: Canada’s K-shaped economy has put the retail sector in a precarious spot. Lux brands catering to the wealthy have thrived, and budget retailers have seen a major spike in business, but many brands that sit somewhere in between, like Roots, have wilted.
Retail bankruptcies and insolvencies have surged over the past four years, reversing a 25-year decline. A number of mall staples like Hudson’s Bay and Frank and Oak have bitten the dust in the past year.
Bottom line: Roots’ recent performance might be uninspiring, but it’s still a strong brand that seems tailor-made to appeal to shoppers looking to wear their Canadian pride (literally) on their sleeve. It will surely garner interest from buyers if it does end up on the market.—LA