Nordstrom said Thursday that it will exit the Canadian market, shuttering all its locations as the company struggles to reach profitability in Canada.
The company, which operates six Nordstrom stores and seven discount Nordstrom Rack stores in Canada, made the announcement alongside the release of its fourth quarter results. Nordstrom Canada employs approximately 2,500 people.
"We entered Canada in 2014 with a plan to build and sustain a long-term business there. Despite our best efforts, we do not see a realistic path to profitability for the Canadian business," Nordstrom chief executive officer Erik Nordstrom said in a statement.
"This decision will simplify our structure, intensify focus on our growth and profitability goals and position us to create greater value for our shareholders."
Nordstrom Canada said it obtained an initial order for creditor protection under the Companies' Creditors Arrangement Act (CCAA) on Thursday to facilitate the winding down of its Canadian operations. The company said its e-commerce website will cease operations on Thursday, and that the in-store wind down is expected to be completed by late June.
The exit from the Canadian market is expected to result in a $400 million hit to Nordstrom's 2023 net sales, but a small boost to the bottom line.
Alicja Siekierska is a senior reporter at Yahoo Finance Canada. Follow her on Twitter @alicjawithaj.