Le Chateau entering creditor protection, closing all 123 stores in Canada

Le Chateau files for bankruptcy, plans to close 123 stores

The application under the Companies' Creditors Arrangement Act for protection from creditors will be heard today by a Quebec court.

"Management and the Board of Directors of the Company have come to the very hard decision that the Company can no longer continue its operations", reads a release from the once-thriving homegrown retail brand.

Le Chateau is looking to sell off its remaining merchandise before shuttering 123 locations across Canada.

Le Chateau has 1,400 employees across the country, including 500 staff at its head office.

The loss represents a big hit to the Canadian fashion retail industry, Lohr says. Others include Mexx, Raitmans, and Jacob.

With COVID-19 continuously cancelling events and celebrations throughout 2020, consumer demand for Le Château's holiday party and occasion wear has been severely impacted, they say.

It added: "Unfortunately, in these circumstances, the company has no other choice but begin the process of liquidation".

However, Le Château Inc. has started the process of liquidating its assets, citing "numerous challenges due to the ongoing COVID-19 pandemic" in a news release - meaning it will soon be gone for good. However, as we see the trend towards more sustainable and ethical practices in retail and away from fast fashion, the brand's prominence in the Canadian retail space diminished.

The company said it expects Gordon Brothers Canada ULC and Merchant Retail Solutions ULC to be named as advisers in carrying out the liquidation, and that PricewaterhouseCoopers Inc. will be appointed controller of the retailer.



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