Le Chateau Closing Its Doors, Files For Creditor Protection

Cornelia Mascio
Ottobre 25, 2020

Stores in Mississauga that will close include locations inside Square One Shopping Centre and Erin Mills Town Centre.

Le Chateau's application under the Companies' Creditors Arrangement Act will be heard Friday by a Quebec court.

Le Chateau now has 123 stores across Canada, in addition to its e-commerce website.

The company said it has spent much of the COVID-19 pandemic trying to refinance or sell the business to a third party that would keep it in operation, but was unsuccessful.

The closure of the chain will see 123 stores across Canada shuttered, including 14 in British Columbia.

In a communiqué, the company noted "the retail sector has faced numerous challenges because of the COVID-19 pandemic".

Le Château says the company's board of directors came to the "very hard decision" after attempting to refinance or sell the company over the last few months.

The report says the company largely depends on the holiday season "which represents the core of our offering" since consumers tend to buy holiday wear for Christmas parties, work parties and to bring in the New Year.

"We regret the impact this will have on our people and can assure you that we explored all options available to us prior to taking this hard decision", the company said. "Regrettably, these circumstances leave the Company with no option other than to commence the liquidation process", reads a statement posted on the company's corporate website.

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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