27 Canadian Brands That Bounced Back Stronger After Scandal

From misleading labels to eyebrow-raising boardroom behavior, some of the nation’s most beloved brands have taken nosedives straight into the PR abyss. However, many of these brands dusted themselves off and returned to the game. These organizations transformed negative publicity into opportunities for renewal through strategic communication, operational improvements, and thoughtful rebranding initiatives. Here are 27 prominent Canadian companies successfully rehabilitated their corporate images.

Lululemon Athletica: See-Through Shame

Remember when Lululemon leggings went see-through in 2013? Consumers weren’t thrilled about flashing strangers during yoga class. Founder Chip Wilson didn’t help when he said some women’s bodies weren’t right for the pants—cue outrage. However, by addressing the crisis head-on and innovating its offerings, Lululemon regained consumer trust and strengthened its position in the athleisure market. Today, it’s a $60 billion brand worn by yogis and brunch-goers.

Tim Hortons: The Roll-Up That Rolled Too Far

Once a beloved Canadian icon, Tim Hortons faced significant challenges in the late 2010s. After its 2014 acquisition by Restaurant Brands International (RBI), tensions arose between the parent company and franchisees over cost-cutting measures, leading to public disputes and a decline in brand reputation. There was also outrage over changes to the Roll Up the Rim contest. After much public flak, Tim Hortons restored parts of the old contest and pledged better treatment for workers. Double-double redemption achieved.

SNC-Lavalin: Engineering an Image Overhaul

Once Canada’s engineering darling, SNC-Lavalin’s 2019 corruption scandal was so spicy it triggered a political crisis. The name merges “Atkins,” a UK-based engineering firm acquired in 2017, with “Réalis,” reflecting its Montreal roots and focusing on realizing projects. Under CEO Ian Edwards, the company exited unprofitable sectors, such as oil and gas, and ceased bidding on fixed-price contracts prone to overruns. This strategic overhaul led to a 75% stock increase in early 2023. With over 36,000 employees, AtkinsRéalis now emphasizes digital transformation and sustainable infrastructure, distancing itself from past controversies.

Bombardier: A Turbulent Ride

Bombardier faced backlash for executive bonuses amid taxpayer bailouts and production delays. But lo and behold, they pivoted by shedding commercial jets and refocusing on high-margin private and business aircraft. Focusing on business jets, Bombardier invested in its Global and Challenger series and expanded its aftermarket services. By 2023, the company reported revenues of $8.67 billion and delivered 146 aircraft, with a backlog increasing to $14.4 billion. CEO Éric Martel’s leadership has been pivotal in this turnaround, with shares rising nearly sixfold since he took over.

Maple Leaf Foods: The Listeria Outbreak

2008 a listeria outbreak from Maple Leaf Foods products led to 23 deaths. CEO Michael McCain didn’t hide; he took full responsibility in a heartfelt apology. The company settled class-action lawsuits for $27 million and invested heavily in food safety, including rigorous sanitation protocols and establishing a dedicated food safety team. These measures and McCain’s empathetic leadership helped restore consumer trust. By late 2009, Maple Leaf Foods returned to profitability, with its stock price rebounding to 79% of pre-crisis levels. The company’s crisis management is now regarded as a benchmark of corporate responsibility and recovery.

Joe Fresh: Rana Plaza Fallout

Joe Fresh, a Canadian fashion brand under Loblaw Companies, faced intense scrutiny after the 2013 Rana Plaza factory collapse in Bangladesh, where over 1,100 people died. Garments for Joe Fresh were produced in the building, linking the brand to the tragedy. After a PR nightmare, Loblaw signed the Accord on Fire and Building Safety and committed to improving working conditions. Joe Fresh continues to operate, having reinforced ethical sourcing practices.

Loblaw Companies: Bread Price-Fixing Fiasco

Speaking of Loblaw, they were also caught in a 14-year-long bread price-fixing scheme. Oops. Loblaw overhauled its compliance programs to rebuild trust, established an independent Compliance Office, and committed to ethical business practices. Despite public backlash and boycotts, the company’s transparency and corrective actions have contributed to its recovery and continued prominence in Canada’s retail sector. Canadians grumbled but forgave, mostly.

BlackBerry: The Rise, Fall, and Reinvention

BlackBerry went from being a world-dominating smartphone pioneer to being a tech has-been when it failed to keep up with iPhones. But like any scrappy Canadian underdog, BlackBerry reinvented itself. Today, it’s a cybersecurity and embedded systems powerhouse, with products in over 215 million vehicles worldwide. Automakers like BMW, Ford, and VW trust their QNX platform. Despite a messy past, including a backdating stock options scandal in 2007, the brand’s pivot exemplifies resilience, a true comeback story rooted in innovation and national pride.

Air Canada: Rough Skies and Rougher Service

Air Canada has faced significant challenges recently, particularly concerning customer service and operational reliability. In 2024, the airline was embroiled in controversy when a chatbot on its website misinformed a passenger about bereavement fare policies, leading to a court ruling of “negligent misrepresentation” against the airline. Additionally, a system error in 2023 resulted in a passenger being marked as a “no-show” despite having boarded the flight, culminating in a court awarding the passenger $2,000 in damages. Still, it worked to improve customer service, streamline digital interfaces, and revamp loyalty programs. It’s not perfect, but people are flying again—and often.

Canopy Growth: High Hopes, Higher Losses

Canopy Growth Corporation, once a leader in the cannabis industry, faced significant challenges following a scandal involving its BioSteel division. In 2023, the company uncovered revenue misstatements in BioSteel’s financials, leading to a restatement of earnings and a substantial net loss of C$3.3 billion for the fiscal year. This prompted a strategic overhaul, including divesting non-core assets and exiting international markets. Canopy Growth is now focused on profitability, better partnerships, and pivoting away from risky international plays.

WestJet: Labour Turbulence

WestJet’s shift from friendly budget airline to corporate overlord during labour disputes hurt its cuddly image. But new leadership, improved union relations, and customer-first messaging helped the airline recapture some of its West-is-best charm. In the aftermath, WestJet’s reputation suffered due to customer frustrations over cancellations and inadequate communication. However, the airline took steps to address the issues, including ratifying a new labor contract with AMFA, which received strong support from the union membership.

Roots: From Cool to Costly to Cool Again

Roots, founded in 1973 by Michael Budman and Don Green, began as a footwear company in Toronto, later expanding into apparel and leather goods. The brand gained prominence by associating with the Canadian Olympic teams, outfitting athletes in iconic pieces like the red “poorboy” cap during the 1998 Winter Games. However, in the mid-2000s, Roots faced challenges, including increased competition from fast fashion brands and shifts in consumer preferences. The rebranding push brought back its retro appeal, leaner product lines, and celeb collaborations.

Canada Goose: Fur Flap

Canada Goose, a Canadian luxury outerwear brand, faced significant backlash over its use of coyote fur in its iconic parkas, leading to protests and campaigns by organizations like PETA. In response, the company announced in June 2021 that it would cease purchasing fur by the end of 2021 and eliminate its use in products by the end of 2022. This decision was part of a broader strategy to enhance environmental sustainability and align with evolving consumer preferences. It still sells status-symbol parkas—but with a conscience.

Desjardins Group: Data Disaster

In 2019, Desjardins suffered a massive data breach affecting 4.2 million customers. Yikes. Following the incident, Desjardins immediately terminated the employee involved and offered affected members free credit monitoring and identity theft insurance. The company also overhauled its security measures, establishing a dedicated 900-person security office with a $150 million budget to enhance data protection. They even responded quickly with transparency, credit monitoring, and cybersecurity investments.

Hudson’s Bay Company: The Retail Rollercoaster

Hudson’s Bay struggled with store closures, leadership churn, and losing relevance. But surprise! HBC pulled a retail resurrection. Under CEO Richard Baker, it ditched underperforming international ventures (bye, Lord & Taylor!), focused on digital transformation, and revamped The Bay’s online platform—finally catching up to the 21st century. In 2021, they even split e-commerce and stores into separate businesses, a bold move in high heels. Now, Hudson’s Bay is back in the fashion game, with Indigenous artist collabs and sustainability pledges giving it street cred with Gen Z and grandma alike.

Canadian Tire: The Price Accuracy Snafu

Back in the mid-2000s, Canadian Tire found itself in a pickle, like, barcode-scanner-meets-wrong-price kind of pickle. The company faced a scandal when numerous customers reported that advertised sale prices didn’t match what showed up at the register. This wasn’t just annoying—it was a breach of the Retail Council of Canada’s Scanner Price Accuracy Code (yes, that’s a thing), and it dinged the brand’s trust score harder than a hockey puck to the shin. Meanwhile, their loyalty program kept customers tethered like a bungee cord.

Postmedia Network: Editorial Independence Concerns

Postmedia’s ownership raised eyebrows about media bias and influence. But wait—plot twist! Postmedia, post-scandal, doubled down on transparency. They introduced more straightforward editorial guidelines and reinforced internal firewalls (not the IT kind, though those are nice too). While skeptics remain wary, readership has slowly stabilized, and some titles like the National Post have sharpened their edge. Of course, the ownership question still lingers like a nosy raccoon on a Toronto porch (hello, U.S. hedge funds).

Bell Canada: Let’s Talk—About Ethics

Bell’s annual “Let’s Talk” campaign draws praise for mental health awareness. But reports of internal employee mistreatment cast a shadow. Leadership changes, including Mirko Bibic’s appointment as CEO, brought renewed focus on corporate responsibility. Under his tenure, Bell has emphasized transparency and ethical practices, striving to rebuild public trust. While challenges remain, Bell’s efforts to address past issues and promote mental health awareness mark steps toward a more ethical corporate image.

Sobeys: Plastic Bag PR Mess

Sobeys’ switch to paper bags was eco-friendly but poorly rolled out, causing customer confusion and backlash. The company didn’t stop there. It introduced reusable mesh produce bags made from recycled water bottles and phased out unnecessary plastic packaging in other areas. Customer response was overwhelmingly positive; a survey showed that 4.4 out of 5 people supported the decision, with many bringing their reusable bags. Sobeys’ proactive approach turned a potential PR disaster into a sustainability success story, proving that sometimes, the best way to clean up a mess is to bag it responsibly.

Timex Group Canada: Time for Modernization

Once caught in the tick-tock of turmoil during the infamous 1993 Dundee strike in Scotland, Timex Group Canada has since wound itself back into favor. The strike, sparked by layoffs and pay cuts, led to the closure of the Dundee factory after 47 years, marking a significant chapter in Timex’s history. Fast forward to today, and Timex is not just keeping time but setting the pace. In India, the company reported its best-ever quarter in Q2 FY25, with a 37% revenue growth, driven by a 47% surge in its flagship brand and a whopping 88% e-commerce boom. The fashion-forward Philipp Plein brand saw an eye-popping 337% growth, proving that timepieces can be timely and trendy.

Aldo: Fast-Fashion Fumble

Once upon a time in the land of maple syrup and moose, Aldo—a Canadian footwear darling—found itself in a fashion faux pas. In May 2020, the brand tripped over the pandemic runway, filing for creditor protection under Canada’s Companies’ Creditors Arrangement Act. But like any good comeback story, Aldo didn’t lie there with a broken heel. Fast forward to July 2022, and voilà! Aldo strutted out of restructuring, leaner, meaner, and sassier than ever. They paid off international creditors and were on track to settle with North American ones.

Rogers Communications: The Outage Heard Round the Country

In 2022, a nationwide Rogers outage brought phone, banking, and emergency services to a standstill. Rogers coughed up $150 million in customer credits and vowed to spend $10 billion on network improvements. Fast-forward, and the telecom titan bounced back with a merger with Shaw in 2023 (cue the regulatory drama). Ironically, their PR mess made them more transparent—monthly outage dashboards, network fail-safes, and humble pie for breakfast. Moral of the story? Even giants trip over Ethernet cables, but Canadians love a comeback—especially if it comes with faster Wi-Fi and an apology tweet.

Home Hardware: Supply Chain Woes

Home Hardware, that proudly Canuck DIY mecca, faced a true soap-opera-worthy scandal in the early 2010s when former executives were accused of shady supplier dealings (CTV News, 2013). Add to that the COVID-19 supply chain kerfuffle, and the company looked like a hardware store trying to build IKEA furniture without the manual—or screws. But did they hammer through? Oh yes. By 2022, Home Hardware had nailed down a new logistics strategy, investing in AI-powered inventory systems and distribution centre upgrades in Debert, NS.

Cineplex: Box Office Blues

Cineplex faced pandemic closures, streaming competition, and a failed merger with Cineworld. By 2023, ticket sales surged 122% from 2021, and Cineplex diversified like a movie villain trying to go legit—expanding into gaming (hello, Rec Room) and home streaming (Cineplex Store). Also, with Canadian moviegoers craving big screens post-pandemic, Cineplex said “I’m still standing” like an Elton John biopic. Even after being awarded $1.24 billion in damages (2021 Ontario court ruling), they pivoted faster than a Fast & Furious gear shift. From scandal to sequel, Cineplex proved that even a multiplex meltdown in Canada can lead to a blockbuster comeback.

Pizza Pizza: Cheese-gate

Some whispers (and blog posts) claimed Pizza Pizza’s cheese wasn’t “real enough.” The brand countered with new recipes and marketing that leaned into quality. Instead of throwing in the towel (or pizza box), the brand embraced the drama and responded with humor and transparency. They issued heartfelt apologies and a cheesy pun or two, and launched a customer-friendly campaign to restore the cheesy goodness they’re known for. With a spicy combination of social media savvy, heartwarming PR stunts, and good old-fashioned pizza perfection, Pizza Pizza bounced back stronger than ever.

MEC (Mountain Equipment Company): Cooperative No More

MEC’s decision to sell to a private firm sparked fury from loyal co-op members. Protests, lawsuits, and bitter tweets followed. The sale was a shocker, especially since MEC had over 5 million members who were given no say. A Change.org petition titled “Save MEC” quickly gathered over 130,000 signatures, proving Canadians take their co-ops seriously—even if it means camping out online. Post-sale, MEC rebranded as Mountain Equipment Company, dropped the co-op model, and trimmed its product line to focus on high-quality outdoor gear. By 2023, the company was profitable again, topping the Gustavson Brand Trust Index and expanding its store count.

Indigo Books & Music: From Books to Branded Blankets

Indigo Books & Music, Canada’s literary haven, has had its share of plot twists. Founded in 1996 by Heather Reisman, it swiftly became a staple for book lovers, offering everything from bestsellers to cozy mugs. However, a ransomware attack in early 2023 left its website inoperative for weeks, and a series of boardroom dramas followed, including Reisman’s brief retirement and subsequent return as CEO. In May 2024, shareholders approved a buyout by Trilogy Retail Holdings, a company controlled by Reisman’s husband, Gerald Schwartz, making Indigo a private entity. Now, you can read and smell artisanal candles without guilt.

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