A sign on the local Saan Stores Ltd. clothing store says it will close, but that might not be the case, says a spokesman with the veteran retailer.

In an interview from Toronto this morning, Greg Crombie said closing signs have gone up on many Saan stores across the country.

However, there's been no decision made on what stores will actually close up shop under a company that's now under court protection under the Companies' Creditors Arrangement Act.

A press release earlier this month notes Saan sales have been impacted by competitors like Wal-Mart and Giant Tiger moving into the market, including Saan's core rural markets.

'These changes in the Canadian retail dynamic are a primary factor in the significant detoriation in sales and profitability experienced by Saan over the last six years of poor financial performance,' the release states.

'Saan has suffered with: weaker than anticipated sales, burdensome costs associated with the significant overhead required to maintain the company's head office, warehousing and other support systems; substantial costs associated with a number of unprofitable and onerous contracts; and, the lack of success of 28 recently introduced, new concept power centres'.'

Net losses over the last six years have been in excess of $47.7 million, earning net profits in two of the last six years.

The court protection is for a reorganization of the company, which owes $17 million to the Congress Financial Corp.

'In order for Saan to remain viable, the company must rationalize its current number of retail locations, which will require Saan to reduce its current number of employees and refocus its operations in those markets where it can be successful and profitable,' reads the statement.

Crombie did not have the number of employees who work at the Whitehorse store, which was rebuilt after burning to the ground in -40 temperatures in January 1991.

For the company to remain viable, the liquidation sale is happening at stores across the country.

'The inventory plan is the only realistic method available to quickly realize upon Saan's inventory, allowing the company to use the balance of the monies received from the sale to continue the business and to put forward a plan of compromise and arrangement to affected creditors,' reads the release.

After the inventory sale and the company decides which of its stores will remain open, the stores will be restocked with new merchandise beginning in April.

Saan first opened an outlet in 1947. It was originally a war surplus store, with the name standing for Surplus Army, Air Force and Navy.