Parasuco Retail closes stores, lays off half its staff, files for bankruptcy

Salvatore Parasuco in Montreal on Oct. 25, 2005. (CP / Ian Barrett)

MONTREAL -- Parasuco Retail Inc. has filed for bankruptcy and will close all seven stores in Canada.

The Montreal-based denim retailer says it's shuttering the stores immediately but customers can continue to purchase merchandise through its website.

Most of the stores are in Quebec and one is in Mississauga, Ont. The closures will result in 80 layoffs.

About 70 employees who work for Parasuco Jeans Inc. will continue to be employed in Montreal, and will focus their efforts on wholesale, licensing and distribution.

Parasuco joins a list of retailers that are closing up shop in Canada, including Target Corp., Sony Corp., Mexx Canada, Smart Set and Boutique Jacob.

The Parasuco brand became popular in the early 2000s for its stretch and acid wash jeans.