Dylex
Corporate brand
UnclaimedDylex was a Canadian retail holding company that built a large portfolio of apparel and discount-store chains before being dismantled in the early 2000s.
Last updated August 25, 2026
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Overview
Dylex Limited was a Canadian retail holding company and one of the country's largest multi-chain retailers during the 1970s and 1980s. Rather than operating under one unified consumer-facing store identity, Dylex assembled a portfolio of specialty and discount retailers serving different segments of the apparel market. Its businesses included Tip Top Tailors for men's clothing, Fairweather for women's career and casual wear, Thriftys for denim and jeanswear, Braemar for women's tailored clothing, and BiWay, a large discount chain selling basic apparel and general merchandise. The company also operated or acquired other retail interests in Canada and the United States, including NBO Stores and, for a time, Harry Rosen. Dylex was formed in 1966 to facilitate the purchase of Tip Top Tailors. Its founders were Jimmy Kay, a businessman and decorated Second World War veteran, and Wilfred Posluns, a former stockbroker. The name was derived from the phrase "Damn Your Lousy Excuses," reflecting the founders' informal, results-oriented culture. From its earliest years, Dylex combined retail operations with manufacturing and pursued growth through acquisitions. It also generally allowed acquired chains to retain their existing management, enabling the individual banners to preserve their market identities while benefiting from the resources of a larger owner. The company's most rapid expansion occurred in the 1970s and 1980s. It grew to operate 17 chains and more than 2,700 stores in Canada and the United States at its peak, while reported annual sales reached approximately $650 million in 1980. Dylex's portfolio covered several price points and customer groups, from mid-priced men's tailoring and women's apparel to value-oriented discount retail. Its acquisition of NBO Stores, a U.S. men's-clothing discounter, illustrated the company's ambition to expand beyond Canada. Dylex acquired half of NBO in 1984 and the balance in 1988. The group later encountered difficulties associated with its acquisition-led strategy and the heavy borrowing used to finance expansion, particularly in the United States. Relations between co-founders Kay and Posluns deteriorated, and Kay left the business in the early 1990s. Dylex sought bankruptcy protection in 1995. It continued to sell businesses and restructure its operations, but the group was ultimately broken apart. In 2000, Thriftys, Braemar, and National Logistics were sold to American Eagle Outfitters. Other divisions were sold separately, including BiWay and Fairweather, and the remaining assets were disposed of by 2001. Dylex made a late attempt to establish a new off-price chain called Labels in 1999. The concept was intended to compete with Winners in the Canadian off-price apparel market, but it did not achieve the intended scale. By the end of 2000, Labels had been acquired by TJX Companies and was subsequently folded into the Winners and HomeSense organization. BiWay itself was acquired by Hardof Wolf Group, a vehicle associated with McCrory Stores, but the planned conversion of its stores into a dollar-store format did not proceed. Most BiWay locations closed in August 2001, marking one of the final visible stages of Dylex's disappearance from Canadian retail. A proposed revival of BiWay was announced in 2018 under the name BiWay $10 Store, with an intended Toronto location. The plans were put on hold following the death of the revival's founder in 2020. The revival did not restore Dylex as an operating group. Historically, Dylex is significant for the scale of its Canadian retail portfolio, its decentralized multi-banner model, and the risks exposed when acquisition-driven expansion is financed with substantial leverage.
History
Dylex Limited was established in 1966 as a holding company created to acquire Tip Top Tailors. The venture was formed by Jimmy Kay and Wilfred Posluns. Kay was a businessman and decorated Second World War veteran, while Posluns had previously worked as a stockbroker. The company's unusual name was formed from the phrase "Damn Your Lousy Excuses." Dylex began with both retail and manufacturing activities and soon expanded its portfolio through acquisitions and operating partnerships. The company absorbed Posluns' existing business interests and Kay's Fairweather stores. Its operating philosophy was to acquire retail chains while leaving day-to-day control with their existing management teams. This decentralized structure allowed Dylex to maintain different store identities and merchandising approaches across its portfolio. The group developed a presence in men's clothing, women's apparel, denim, discount retail, and general merchandise rather than relying on a single format. Dylex's strongest period came during the 1970s and 1980s. It expanded in Canada and the United States and eventually operated 17 chains with more than 2,700 stores at its peak. Its principal Canadian divisions included BiWay, Thriftys, Tip Top Tailors, Fairweather, and Braemar. BiWay was the group's large discount chain, selling basic apparel and general merchandise. Thriftys concentrated on denim and jeanswear. Tip Top Tailors served the men's suit and sportwear market. Fairweather offered women's career and casual clothing, while Braemar focused on women's tailored clothing and accessories. The American expansion included NBO Stores, a men's-clothing discounter founded in Yonkers in 1971 as National Brands Outlet. Dylex acquired half of NBO in 1984 and purchased the remaining half in 1988. The company also acquired Harry Rosen, although Harry Rosen later bought the business back in 1992. These transactions reflected Dylex's broader strategy of building scale through ownership of specialized chains while preserving their established operating models. The same expansion strategy eventually created serious financial pressure. Dylex funded purchases with significant borrowing, and its expansion into the United States became an important factor in the group's decline. Tensions between Kay and Posluns also worsened. Kay left the company in the early 1990s, and Dylex sought bankruptcy protection in 1995. The company attempted to reshape its portfolio, but its divisions were increasingly sold to other owners. In 1999, Dylex launched Labels, an off-price chain intended to challenge Winners. The venture did not succeed as planned. TJX Companies acquired Labels by the end of 2000 and incorporated it into the Winners and HomeSense organization. During the same period, American Eagle Outfitters purchased Dylex's Thriftys, Braemar, and National Logistics divisions. Fairweather and BiWay were also transferred to separate ownership. The remaining Dylex assets were sold by 2001, ending the group as a significant operating retailer. BiWay was acquired by Hardof Wolf Group, a shell company associated with McCrory Stores. McCrory announced plans to convert BiWay locations into dollar stores called Dollar Zone, but the conversion did not take place. In August 2001, all but a small number of Toronto-area stores closed. The collapse generated disputes over unpaid employee obligations and produced an Ontario bankruptcy-law precedent after court proceedings required Hardof Wolf to repay some amounts owed to employees. Reports also alleged that money had been removed from Dylex for use in other companies associated with Meshulam Riklis. In December 2018, a new operator announced plans to revive BiWay as BiWay $10 Store, beginning with a proposed 7,500-square-foot Toronto location in 2020. Those plans were later put on hold after the death of the revival's founder in October 2020. The revival did not reconstitute Dylex, which remains a defunct retail group. Its historical importance lies in the scale of its Canadian multi-banner portfolio, its decentralized acquisition model, and the consequences of financing rapid retail expansion with heavy leverage.
- 2018
BiWay revival proposed
[1]A proposed new BiWay $10 Store format was announced for Toronto.
- 2001
Dylex's retail network is dismantled
[1]The remaining Dylex businesses were sold off, and most BiWay stores closed.
- 2000
Major divisions are sold
[1]American Eagle Outfitters acquired Thriftys, Braemar, and National Logistics, while TJX Companies acquired Labels.
- 1999
Labels is launched
[1]Dylex introduced Labels as an off-price apparel and accessories chain.
- 1995
Bankruptcy protection sought
[1]Dylex sought bankruptcy protection as leverage and operating difficulties undermined the group.
- 1992
Harry Rosen buys back his company
[1]Harry Rosen reacquired Harry Rosen Inc. after its period under Dylex ownership.
- 1988
NBO Stores becomes wholly owned
[1]Dylex acquired the remaining NBO Stores interest.
- 1984
Initial NBO Stores acquisition
[1]Dylex purchased half of the U.S. NBO Stores chain.
- 1980
Sales reach a peak-period benchmark
[1]Dylex's reported annual sales reached approximately $650 million during its major expansion period.
- 1966
Dylex is formed
[1]Jimmy Kay and Wilfred Posluns formed Dylex as a holding company for the acquisition of Tip Top Tailors.
Products and positioning
A multi-banner retail group spanning value apparel, specialty clothing, men's tailoring, women's fashion, denim, and discount general merchandise. Dylex positioned its individual chains for distinct customer segments rather than presenting a single standardized national retail identity.
Discount department and general merchandise retail
BiWay
BiWay was Dylex's large discount chain and one of its most important divisions. It sold basic apparel alongside general merchandise and served value-conscious Canadian shoppers. BiWay accounted for more than half of Dylex's fiscal 2000 revenue according to the referenced material. After Dylex's collapse, the chain was acquired by Hardof Wolf Group, but an announced conversion to Dollar Zone stores failed and most locations closed in 2001.
Denim and jeanswear retail
Thriftys
Thriftys was Dylex's jeanswear-focused chain, selling denim apparel and related accessories. It represented a distinct youth and casualwear position within the broader Dylex portfolio. The division was sold to American Eagle Outfitters in 2000 as Dylex dismantled its operating businesses.
Men's tailoring and apparel
Tip Top Tailors
Tip Top Tailors was the business around which Dylex was formed. The chain focused on men's suits, tailoring, sportwear, and related clothing at a mid-market price position. It was one of the group's foundational banners and remained part of the historical core of Dylex's menswear operations.
Women's career and casual apparel
Fairweather
Fairweather was Dylex's women's career and casual clothing chain. It formed part of the women's-wear group assembled by Dylex and helped give the company exposure beyond men's tailoring and discount retail. The chain was sold to a private Canadian investment consortium during the disposal of Dylex's businesses.
Women's tailored clothing and accessories
Braemar
Braemar specialized in women's tailored apparel and accessories. It occupied a more tailored and formal position than the group's value-oriented formats. Dylex sold the division to American Eagle Outfitters in 2000 during the breakup of its retail portfolio.
Off-price apparel and accessories · 1999
Labels
Labels was launched in 1999 as Dylex's attempt to compete in the Canadian off-price market with Winners. The chain offered brand-name clothing and accessories, but the venture was unsuccessful under Dylex ownership. TJX Companies acquired Labels by the end of 2000 and folded it into its Winners and HomeSense organization.
Men's discount apparel
NBO Stores
NBO Stores was a U.S. men's-clothing discount chain founded as National Brands Outlet. Dylex acquired a 50 percent interest in 1984 and the remaining interest in 1988. The acquisition expanded Dylex's geographic reach and reinforced its strategy of owning specialized retail chains while retaining local management.
Controversies
2001
BiWay employee-payment dispute
After BiWay was acquired by Hardof Wolf Group and most stores closed, employees were reportedly left owed money. Court proceedings eventually required Hardof Wolf to repay some employee obligations and established a precedent in Ontario bankruptcy case law. The referenced material also reports allegations that Meshulam Riklis had diverted money from Dylex to other companies associated with him.
Brand decisions
2000
Sell major divisions during breakupM&ABackground
Dylex was restructuring after bankruptcy protection and could no longer sustain its former portfolio.
Action taken
Thriftys, Braemar, and National Logistics were sold to American Eagle Outfitters, while Labels went to TJX Companies and other businesses went to separate buyers.
Aftermath
The disposals removed the principal operating divisions from Dylex and led to the group's disappearance as a major retailer by 2001.
1999
Launch Labels to challenge WinnersProduct launchBackground
Dylex attempted to enter the growing off-price market for branded clothing and accessories.
Action taken
It created the Labels chain as a direct competitor to Winners.
Aftermath
The concept failed to develop successfully and was sold to TJX Companies by the end of 2000.
1984
Acquire half of NBO StoresM&ABackground
Dylex sought additional scale in U.S. men's discount apparel.
Action taken
The company purchased a 50 percent interest in NBO Stores.
Aftermath
Dylex acquired the remaining interest in 1988, making NBO a wholly owned part of the portfolio.
1966
Create a holding company around Tip Top TailorsM&ABackground
Kay and Posluns formed Dylex to acquire Tip Top Tailors and build a broader retail and manufacturing group.
Action taken
Dylex absorbed related interests and expanded through a portfolio of separately managed retail chains.
Aftermath
The transaction established the acquisition-led, multi-banner model that defined Dylex for several decades.
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