Dive Brief:

• Toronto-based importer, wholesaler, and retailer Sherson Group sought bankruptcy protection on Tuesday, according to filings.

• The decline of the Canadian dollar, nicknamed the “loonie,” has put pressure on the company, the largest retailer of women’s footwear and accessories in Canada, which has also felt the effects of the recession for some time.

• Some 48 Nine West stores in the country are affected by the move.

Dive Insight:

Sherson Group has struggled to regain its footing since the recession, and the recent decline of the “loonie” has put added pressure on the company. The company is one of several facing severe challenges in Canada, which presents unique logistical challenges and expenses, thanks in part to its demographics and geography. The company expects to exit bankruptcy protection and is continuing operations, but may have to close underperforming stores.

“The company has faced … rising foreign-exchange costs, and it’s been dealing with some underperforming stores,” Gilles Benchaya, a partner at Richter Advisory Group, which is serving as the trustee in the restructuring, told the Globe and Mail. “Currently, it’s business as usual – the stores are operating and the company is still operating its business. The filing has put a stay of proceedings in place to allow [Sherson] a chance to restructure.”