A Le Chateau retail store is shown in Montreal on Wednesday July 13, 2016. Le Chateau Inc. says it is seeking court protection from creditors under the Companies’ Creditors Arrangement Act to allow it to liquidate its assets and wind down its operations.THE CANADIAN PRESS/Ryan Remiorz

A Le Chateau retail store is shown in Montreal on Wednesday July 13, 2016. Le Chateau Inc. says it is seeking court protection from creditors under the Companies’ Creditors Arrangement Act to allow it to liquidate its assets and wind down its operations.THE CANADIAN PRESS/Ryan Remiorz

Clothing retailer Le Chateau plans to close its doors, files for CCAA protection

Le Chateau said it intends to remain fully operational as it liquidates its 123 stores

After 60 years in operation, Le Chateau Inc. is seeking court protection from creditors to allow it to liquidate its assets and close its stores.

The Montreal-based company said Friday that 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.

“Its already evident impact on consumer demand for Le Chateau’s holiday party and occasion wear, which represents the core of our offering, has diminished Le Chateau’s ability to pursue its activities,” the company said.

“Regrettably, these circumstances leave the company with no option other than to commence the liquidation process.”

The company’s application for protection from creditors under the Companies’ Creditors Arrangement Act (CCAA) will be heard by a Quebec court on Friday.

Le Chateau said it intends to remain fully operational as it liquidates its 123 stores, but the eventual closures will mean the end of about 1,400 jobs — 500 at its head office and 900 at stores.

“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.

Le Chateau expects Gordon Brothers Canada ULC and Merchant Retail Solutions ULC to be appointed as consultants to implement the liquidation and PricewaterhouseCooper Inc. to become its monitor in CCAA proceedings.

If Le Chateau’s CCAA application is granted, the company will obtain interim financing from Wells Fargo Capital Finance Corp. Canada to help it fund post-filing working capital requirements.

The company’s application comes after several other Canadian retailers have shuttered or downsized operations in the wake of the pandemic.

Reitmans Canada Ltd., Aldo Group Inc., DavidsTea Inc., Mountain Equipment Co-operative, Moores the Suit People Corp. and Laura’s Shoppe Inc. are among the dozens of retailers that have all filed for CCAA.

The Canadian Press

Like us on Facebook and follow us on Twitter.

Want to support local journalism? Make a donation here.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Alberta had 1,571 active COVID-19 cases on Tuesday. THE CANADIAN PRESS
Alberta’s central zone now has 1,101 active COVID-19 cases

Provincial death toll has risen by nine

(Emily Jaycox/Ponoka News)
FortisAlberta’s ‘Lights of Joy’ bring smiles to Ponoka seniors

Residents of Golden Leisure Lodge treated to a light display

COVID-19. (Image courtesy CDC)
Alberta reports 1,731 new COVID-19 cases on Saturday

The province’s central zone has 992 active cases

(Photo submitted)
Ermineskin citizen graduates vet school, is part of busy practice

Dr. Justin Hodgson is rolling up his sleeves in Meadow Lake, Sask.

Jeffery Kraft. Photo submitted
Family of Jeffery Kraft feels ‘robbed’ after one accused discharged

Family of victim responds to preliminary hearing in homicide case

Idyllic winter scenes are part of the atmosphere of the holiday season, and are depicted in many seasonal movies. How much do you know about holiday movies? Put your knowledge to the test. (Pixabay.com)
QUIZ: Test your knowledge of holiday movies and television specials

The festive season is a time for relaxing and enjoying some seasonal favourites

A B.C. Ambulance Service paramedic wearing a face mask to curb the spread of COVID-19 moves a stretcher outside an ambulance at Royal Columbia Hospital, in New Westminster, B.C., on Sunday, November 29, 2020. THE CANADIAN PRESS/Darryl Dyck
Top doctor urges Canadians to limit gatherings as ‘deeply concerning’ outbreaks continue

Canada’s active cases currently stand at 63,835, compared to 53,907 a week prior

A Canadian Pacific freight train travels around Morant’s Curve near Lake Louise, Alta., on Monday, Dec. 1, 2014. A study looking at 646 wildlife deaths along the railway tracks in Banff and Yoho national parks in Alberta and British Columbia has found that train speed is one of the biggest factors. THE CANADIAN PRESS/Frank Gunn
Study finds train speed a top factor in wildlife deaths in Banff, Yoho national parks

Research concludes effective mitigation could address train speed and ability of wildlife to see trains

A airport worker is pictured at Vancouver International Airport in Richmond, B.C. Wednesday, March 18, 2020. THE CANADIAN PRESS/Jonathan Hayward
Canada extends COVID restrictions for non-U.S. travellers until Jan. 21 amid second wave

This ban is separate from the one restricting non-essential U.S. travel

In this undated photo issued by the University of Oxford, a volunteer is administered the coronavirus vaccine developed by AstraZeneca and Oxford University, in Oxford, England. Pharmaceutical company AstraZeneca said Monday Nov. 23, 2020, that late-stage trials showed its coronavirus vaccine was up to 90% effective, giving public health officials hope they may soon have access to a vaccine that is cheaper and easier to distribute than some of its rivals. (University of Oxford/John Cairns via AP)
Moderna chairman says Canada near head of line for 20 million vaccine doses

Trudeau created a firestorm when he said Canadians will have to wait a bit to get vaccinated

Conservative MP Pierre Poilievre speaks during a news conference Monday, Nov. 16, 2020 in Ottawa. Poilievre says building up the Canadian economy post-pandemic can't be achieved without a massive overhaul of the tax system and regulatory regime. THE CANADIAN PRESS/Adrian Wyld
Conservatives attack Trudeau’s ‘reset’ but they have ideas for their own

‘We don’t need subsidized corporate welfare schemes that rely on endless bailouts from the taxpayer’

There were 47 new COVID-19 cases in Alberta Tuesday. (THE CANADIAN PRESS/Paul Chiasson)
Spread of COVID-19 in Brampton, Ont., linked to systemic factors, experts say

‘We’re tired. We’re numb. We’re overworked. We’re frustrated, because it’s not our rules’

A couple embrace during a ceremony to mark the end of a makeshift memorial for victims of the Toronto van attack, at Yonge St. and Finch Ave. in Toronto on Sunday, June 3, 2018. THE CANADIAN PRESS/Cole Burston
‘I’ve been spared a lot,’ van attack survivor says as she watches trial alone

Court has set up a private room for victims and families of those killed in the Toronto van attack

A person enters a building as snow falls in Ottawa, Sunday, Nov. 22, 2020. Ottawa has been successful in limiting the spread of COVID-19 during its second wave thanks to the city’s residents who have been wearing masks and staying home, said Ottawa’s medical officer of health Dr. Vera Etches. THE CANADIAN PRESS/Justin Tang
People to thank for Ottawa’s success with curbing COVID-19: health officer

The city’s chief medical officer said much of the credit goes to the people who live in Ottawa

Most Read