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

A homeless couple nap on a Langley City bench in 2018. According to new stats, the number of homeless who live outdoors is on the rise in the City and Township. (Langley Advance Times file)
More homeless are sleeping outdoors in Langley than ever, study finds

Number of ‘unsheltered’ is up 26 per cent from previous count in 2017

Township of Langley firefighters wore protective masks at a Nov. 17, 2020 call to a burning van incident (Dan Ferguson/Langley Advance Times)
Langley Township tightens COVID safety rules following fire department outbreak

Among other measures, firefighters are keeping physically separate during shift changes

Langley School District is warning the families of Peter Ewart Middle School of a possible COVID-19 exposure. (Joti Grewal/Langley Advance Times)
Peter Ewart Middle added to list of COVID school exposures

An individual with COVID-19 was at the school on Nov. 26 and 27

Submit letters to the editor through our website, via email or in writing.
LETTER: Langley man asks people to remember the true reason for Christmas

Find new ways to mark the holiday season during the global pandemic, a letter writer suggests

A tongue-in-cheek message about wearing a face mask to curb the spread of COVID-19 on a sign outside a church near Royal Columbia Hospital, in New Westminster, B.C., on Sunday, Nov. 29, 2020. THE CANADIAN PRESS/Darryl Dyck
B.C.’s COVID-19 infection count climbs back up to 656

20 more people in hospital, active cases still rising

(Needpix.com)
Fraudsters projected to use pet scams to gouge over $3M from customers: BBB

The pandemic heavily contributed to the number of puppy scams

The westbound lanes of Highway 1 between Clearbrook and McCallum roads were closed to traffic Wednesday morning after a fatal collision involving a pedestrian.
Pedestrian dies after being struck by vehicle on Highway 1 in Abbotsford

Collision takes place early Wednesday morning between Clearbrook and McCallum roads

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

A teacher places the finishing touches on the welcome sign at Hunter’s Glen Junior Public School which is part of the Toronto District School Board (TDSB) during the COVID-19 pandemic in Scarborough, Ont., on Sept. 14, 2020. THE CANADIAN PRESS/Nathan Denette
Hindsight 2020: How do you preserve a year many Canadians would rather forget?

Figuring out how to preserve the story of the pandemic poses a series of challenges

Haley Callison. (Facebook photo)
Former B.C. pro hockey player frustrated with COVID-deniers after horrific bout with virus

Haleigh Callison hopes people will follow precautions and tone down the rhetoric

FILE – A near empty waterfront train platform is pictured in downtown Vancouver, Monday, April 20, 2020. THE CANADIAN PRESS/Jonathan Hayward
TransLink disables some services for second day due to ‘suspicious network activity’

Customers cannot use credit card or debit card at fare gates or Compass card vending machines

A man stands in the window of an upper floor condo in Vancouver on March 24, 2020. THE CANADIAN PRESS/Darryl Dyck
Change made to insurance for B.C. condo owners amid rising premiums

Council CEO Janet Sinclair says the change will mean less price volatility

Google Maps screenshot taken at 7:14 a.m.
Westbound Highway 1 lanes in Abbotsford closed as crews investigate serious crash

Crash occurred between McCallum and Riverside roads at around 4 a.m., next update at 8 a.m.

Most Read