Retailer Roots launches strategic review that could lead to a sale

Clothing - including Drake's October's Very Own brand - is displayed at a Roots Canada store

Roots Corp. has launched a strategic review that it says could end with a sale of the clothing retailer.

The apparel business announced the review Tuesday, framing it as a way to analyze and evaluate a range of mostly unspecified alternatives that will maximize value for shareholders.

Over its 53-year history, the business has cemented itself as a symbol of Canadiana by selling cosy, cottage-esque products like sweatpants, toques and mittens at its 100 corporately owned stores in Canada and two more in the U.S. It also has 100 partner-operated shops in Asia.

Though Roots’ majority shareholder is international private equity firm Searchlight Capital Partners LP, the company is headquartered in Toronto and trades on the city’s main stock exchange. Its share price popped by 8.3 per cent or 25 cents on Tuesday, bringing it to $3.26 after the company said the review was underway.

Deanna Andersen, co-founder of advisory firm WADE, suspects Roots’ review will soon show the company is a powerful but “under-monetized heritage brand.”

“The equity in the name is stronger than the business’s current performance and scale,” she said in an email.

“Roots has half a century of built‑in emotional equity, but it’s still operating like a mid‑sized Canadian retailer instead of a global lifestyle brand. A strategic review will surface that gap very quickly: strong gross margins, solid brand love, but subscale growth, heavy Canada dependence, and an underdeveloped U.S. and digital story.”

To improve and avoid becoming “another generic athleisure player,” she said the business has to double down on its lifestyle and Canadiana positioning and put even more weight into its director-to-consumer and e-commerce businesses.

In recent years, the company has invested more heavily in digital marketing, brand ambassadors and partnerships with household names like Barbie and Wicked.

It also relaunched in China and lately, CEO Meghan Roach has been plotting to expand its presence even further into the U.S.

Wendy Salisko, Andersen’s co-founder at WADE, said the review will help Roots decide which markets to double down on, where to exit and whether public markets are still the right home for the business.

Roots’ statement cautioned that it can’t offer assurances that the review will result in any specific action but said its management team remains dedicated to acting in the company’s best interests and executing on its key objectives.

Roots was started by entrepreneurs Michael Budman and Don Green. They were raised in Michigan but met at a summer camp in Ontario in 1963 and 10 years later, decided to head north of the border to start a business.

Roots initially sold negative-heel shoes, which reduced pressure on backs, but later started pumping out sweats, varsity jackets and leather bags ideal for weekend getaways.

As they morphed into a Canadian staple, they outfitted the country’s Olympic team, launched a short-lived airline and attracted Matt Damon and Ben Affleck to star in ads.

Eventually they sold a majority stake in Roots in 2015 to Searchlight Capital Partners L.P., a firm split between Toronto, New York, Miami and London. Roach worked at the firm before joining Roots.

Grocer M&M Food Market, kids apparel brand Gymboree and rubber boot maker Hunter are also part of the Searchlight Capital Partners L.P portfolio.

This report by The Canadian Press was first published March 3, 2026

Tara Deschamps, The Canadian Press