Groupe Dynamite Threatens to Leave Quebec for the U.S.
So, here’s what’s happening right now with Groupe Dynamite, the fashion retailer behind the Garage and Dynamite stores. Despite the company’s strong financial performance, its CEO Andrew Lutfy is seriously considering moving the head office and much of its operations to the United States. And the reason, according to him, isn’t about sales or profits — it’s about frustration with the Quebec government and its immigration policies.
Over the past year, Groupe Dynamite has been doing incredibly well. Sales are up, profits are climbing, and the company’s market value has soared to more than six billion dollars since going public less than a year ago. Under normal circumstances, that kind of growth would put any business leader in a celebratory mood. But when Lutfy talks about the situation, the tone is anything but cheerful.
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He says he feels “fed up” with how the provincial government, led by François Legault, is handling key issues that affect businesses like his. Immigration is at the top of his list of complaints. Many of Groupe Dynamite’s senior executives, including its president, and most of its designers, are recruited from outside Canada — mainly from the United States. Yet, securing and renewing work permits has become a constant struggle. Lutfy points out that about three-quarters of the company’s revenue depends on leaders whose work visas are only valid for around 13 months. That level of instability, he insists, represents an enormous risk.
And it’s not just about individual work permits. He also criticizes recent policy changes that make it harder for spouses of foreign workers to find employment. According to him, this creates a barrier to attracting talented professionals who want to bring their families with them. After years of trying to get Quebec to make adjustments, he says he’s run into nothing but dead ends. In his view, the provincial government is too focused on francization rules and not nearly focused enough on the broader economic impact of companies like his.
What makes this even more striking is that Groupe Dynamite is already heavily invested in the U.S. market. It operates more than 120 stores there and has a large distribution center. The American side of the business accounts for the vast majority of its growth and a significant portion of its sales. Lutfy argues that if his company contributes so much to economic development abroad, the government should allow more flexibility to hire the talent needed to keep expanding globally.
For him, the issue comes down to responsibility — not just to employees, but also to shareholders. If staying in Quebec continues to pose barriers, he says he will have no choice but to relocate. Beyond immigration, he also complains that the province resists innovation in retail policy, like extending shopping hours in key areas such as Montreal.
At the end of the day, his message is clear: unless Quebec shows more willingness to adapt its policies to the needs of global businesses, one of its most successful retail companies may pack up and move south of the border. And for a firm that employs over 600 people at its Montreal head office and contributes millions in taxes, that would be a major loss for the province.
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