"As a result of challenges resulting from the pandemic, the company recently made the very difficult decision to discontinue all or substantially all of their store operations and to focus on an e-commerce model," the chain said. In paperwork posted online by the insolvency trustee handling the restructuring, Mendocino reveals it owes $2.8 million to its main lender, TD Bank, and $5.7 million to various other unsecured creditors, including landlords, suppliers, and other payment processing companies. Founded in 1987, Mendocino has a half-dozen stores under its eponymous brand name and two-dozen of the lower-priced M Boutique. According to trade publication Insolvency Insider which first reported the plans, the chain has 28 stores in the GTA. It's the latest Canadian retailer to succumb to COVID-19, joining Aldo, Reitmans and DavidsTea in announcing restructuring plans in recent weeks that will result in the closure of all or some of their physical stores. More to come.