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Herbal Magic Bankrupt In Eastern Canada, Still Open in West

Herbal Magic Bankrupt In Eastern Canada, Still Open in West

The Canadian weight loss and nutrition company Herbal Magic has declared bankruptcy for all of its Central and Eastern Canada locations. Closures will also be seen in Western Canada as a secured lender has taken over operations in B.C., Alberta, Saskatchewan and Manitoba.

The secured lender will continue operating up to 41 centres in the West. Last year centres in PEI and St. John’s were shut down and an intention to claim for creditor protection was filed – which led to an acquisition by a private equity firm.

The chain’s national business model gained weight (worth millions of dollars of debt) and faced leaner competition in the highly competitive weight-loss industry. Amid the Eastern Canada closures, employees were let go without warning or severance. Customers have also lost something, money they paid upfront instead of pounds they wanted to shed.

Maybe Vancouver’s west-coast / Californian / yoga and healthy lifestyle will be the saving grace for the Western Canadian operations of the bloated Herbal Magic. Otherwise they’re going to need some magic of their own.


Written by Amar Mirchandani @amarmirch

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