Le Chateau Is Going Out Of Business
The popular Montreal clothing chain, Le Chateau, announced today that they are seeking protection from its creditors and will be liquidating its assets. They will close stores across the country, including several in Atlantic Canada.
In an October 23 press release, the company said Covid-19 has had a huge impact on sales across Canada.
“The retail industry faced numerous challenges due to the ongoing COVID-19 pandemic and the second wave currently hitting our communities across Canada,” reads the statement. “It’s already evident impact on consumer demand for Le Château’s holiday party and occasion wear, which represents the core of our offering, has diminished Le Château’s ability to pursue its activities. Regrettably, these circumstances leave the Company with no option other than to commence the Liquidation process.”
Le Chateau has 123 stores across Canada and employs 1,400 people. In Atlantic Canada, Le Chateau has two locations in Halifax, as well as locations in Saint John, Dieppe, Fredericton, Moncton, and Bathurst.
It’s unclear from the press release when or if the stores will be closed. The press release mentions that the company wants to “…refinance or sell the Company to a third party that would continue operating the business.”