Gay retailer blames filing for bankruptcy protection on ban on popper sales — but company’s financial predicament is more complicated. Priape, Canada’s leading gay store and sex shop, has closed its stores. Denis Leblanc, general manager at Priape Inc, confirmed that Priape’s four stores across Canada — Montreal, Toronto, Calgary and Vancouver — closed their doors Oct 21 at 8am Eastern Standard Time.The company has been under bankruptcy protection since June 27. Leblanc says the closings affect 58 employees. A fixture of gay villages, Priape says it has been struggling since Health Canada demanded retailers take poppers off the shelves.
In June, just before the Pride season, Health Canada issued a warning asking retailers to stop selling and distributing alkyl nitrites or, as they are more commonly known on the party scene, the popular drug “poppers.”
“For us that represented a huge amount of sales and profit, so that’s what triggered it all,” Leblanc says. “It’s not so much percentage of sales, but the gross profit it brought in, and proportionately it was very significant.”
Although poppers are not considered a narcotic in Canada, and possession of alkyl nitrates is not illegal, they are considered a drug, and their sale is regulated by the Food and Drug Act. Unauthorized sales of the drug can be punished with jail terms of up to three years and fines of up to $5,000. On Oct 21, Leblanc said he will provide more information “tomorrow or before the end of the week.” He says he’s hopeful that the company can still be saved. He says there is still a chance that the stores, or some of the stores, could remain open. “That possibility exists. I can’t say anymore about this right now.”
But it appears Priape’s financial woes and debt started long before the June ban on popper sales.
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That’s too bad, I’ve gotten alot of leathr from them. Good quality gear and original… I will miss you Priape
too bad sorry
Hope they manage to reorganize and make a come back. The gay community will miss the stores and the quality of BDSM and gay toys they carried.
sad day…Priape was an icon in Canada…poppers were sold everywhere in TO, but nobody had ginch like theirs!
I have never used poppers,so in that front, not big loss for me, but it is sad to see a gay owned business go down. They had a lot of quality stuff and it was a such a treat visiting any of the store.
Always hate to see gay oriented businesses fail, but they fail for the same reasons most businesses do…poor management. 90% of bankruptcies are due to this and last minute press releases always blame everyone/everything else. The only way the loss of one product line can drive you into bankruptcy is if that’s all you sell. Not the case here. Health Canada gave retailers a 30 day warning in May to stop selling poppers (and a chance to sell off their inventory). In June, they started prosecuting those that were still selling. That same month Priape filled for protection. You don’t go from healthy to bankrupt in 30 days. I imagine the executives have been quite generous with their benefits over the last 6 mo.+ looting the accounts while there was still cash flow on the sinking ship which is very common. They stiffed 106 suppliers out of $688K. I hope the 58 employees at least got their last paycheck. Such a shame.
According to the lawyer for Lockerroom brand, Health Canada has just been looking for a reason to block sales. According to him, a women at a sex shop in Vancouver was fired back in Feb. for cause. She counterclaimed that her behavior problems were caused by the store’s use of ‘leather cleaner'(poppers) which she inhaled. A hazardous workplace complaint was filed with the ministry and the ban set in motion over one dubious complaint. The nanny state strikes again. Think of all the sales and job losses she caused.
Hope they can reopen under a new plan. Priape also owns the Manwear brand online and has a minority ownership share in Maleflixxx TV in Canada.
Such a bright & positive synopsis…poor management…looting the accounts…stiffed 106 suppliers out of $688K…GAD!!! How DO we survive in Canada?
This is terrible news. I have purchased all my jeans and casual shirts, the vast majority of my t-shirts, and work out gear from Priape on Church Street in Toronto for the last several years. They were also my source for leather kilts, and Nasty Pig brand clothing, and watches, and sunglasses, and other accessories. The staff were always friendly and helpful. I sure hope they reopen.
@ Deeptongue: You seem to lack empathy by your remarks. 58 people have lost their jobs. How many more with their subcontractors… the cleaning service, window washers, take away people that delivered lunch, and more. My friend is one of the major creditors. With his thin profit margin, he may have to let 1 or 2 people go. What about the other creditors? Its easy to see how over 200 people will be affected. No, Canada will not collapse with these store closings, but some lives will in this bad economy. To make light of the plight of others with sneering remarks must make you quite smug. I hope your lofty perch protects you from harm, but should you fall, you’ll see generous hands extended despite your attitude.