Le Château has announced its intention to liquidate its assets and wind down operations of its 123 stores.
The retailer filed an application seeking the court’s protection from its creditors, which will go before the Superior Court of Quebec on October 23.
Le Château says the company’s board of directors came to the “very difficult decision” after attempting to refinance or sell the company over the last few months.
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. This has diminished the company’s ability to pursue its activities.
“The retail industry faced numerous challenges due to the ongoing COVID-19 pandemic and the second wave currently hitting our communities across Canada,” Le Château said. “Regrettably, these circumstances leave the company with no option other than to commence the Liquidation process.”
Founded in Montreal in 1959, Le Château employs 1,400 Canadians across its 123 retail stores and in its head office. The specialty retailer sells apparel, footwear, and accessories for men and women.
“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 difficult decision,” the company said. “We thank the millions of Canadians whom we have had the privilege of serving over the past six decades.”