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

City of Chilliwack survey asks for feedback on planned Rosedale skate park

The new structure will occupy a 3,000 square foot space in the middle of Rosedale Park

File
Agassiz Speedway hosts food drive for AHCS

Food, toys, cash and more accepted at Super Valu in Agassiz, Nov. 28

(Left to right) Brandon Kloot, board member with John Kampman, board chair, and Matt Van Muyen, System Principal at Unity Christian School pose with the sold sign on a 8.1 acre property the school has purchased to plan for future growth, November, 2020. (Submitted photo)
Land purchase by Unity Christian will help with future growth

New acquisition ‘promises to be a blessing for the long-term future of our school’ says board chair

File
Exterior Christmas decorators wanted Agassiz Seniors Community

Call to action to brighten the upcoming holiday season for isolated seniors

Santa Claus makes his way through the Cottonwood Centre shopping mall during his big arrival in 2019. (Jenna Hauck/ The Progress)
Santa’s Cottonwood Centre visits in Chilliwack cancelled by COVID

Provincial health orders mean Santa won’t be able to visit children, even with physical distancing

A man wearing a face mask to help curb the spread of COVID-19 walks in downtown Vancouver, B.C., Sunday, Nov. 22, 2020. The use of masks is mandatory in indoor public and retail spaces in the province. THE CANADIAN PRESS/Darryl Dyck
B.C. records deadliest day of pandemic with 13 deaths, 738 new COVID-19 cases

Number of people in hospital is nearing 300, while total cases near 30,000

The baby boy born to Gillian and Dave McIntosh of Abbotsford was released from hospital on Wednesday (Nov. 25) while Gillian continues to fight for her life after being diagnosed with COVID-19.
Abbotsford mom with COVID-19 still fighting for life while newborn baby comes home

Son was delivered Nov. 10 while Gillian McIntosh was in an induced coma

B.C. Premier John Horgan, a Star Trek fan, can’t resist a Vulcan salute as he takes the oath of office for a second term in Victoria, Nov. 26, 2020. (B.C. government)
Horgan names 20-member cabinet with same pandemic team

New faces in education, finance, economic recovery

A new ‘soft reporting’ room is opening inside the Ann Davis Transition Society offices on Dec. 1, 2020 which is thought to be the first of its kind in B.C. (Ann Davis Transitional Society/ Facebook)
New ‘trauma-informed’ reporting room opening next week in Chilliwack

It’s a space for reporting domestic violence, sexual assault, or gender-based violence to police

Join Black Press Media and Do Some Good
Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

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

The corporate headquarters of Pfizer Canada are seen in Montreal, Monday, Nov. 9, 2020. The chief medical adviser at Health Canada says Pfizer’s COVID-19 vaccine could be approved in Canada next month. THE CANADIAN PRESS/Ryan Remiorz
Health Canada expects first COVID-19 vaccine to be approved next month

Canada has a purchase deal to buy at least 20 million doses of Pfizer’s vaccine,

The online poster for Joel Goddard, who left his Willoughby home Nov. 10, 2020, has been updated by his family and friends who received word that he’s been found.
Langley man missing since Nov. 10 found alive and safe in Abbotsford

Family of the Willoughby area man had been searching for days. Police find him at Abbotsford Airport

A UBC study recommends an multi-government investment of $381 million to protect 102 species at risk in the Fraser River estuary. (Photo supplied by Yuri Choufour)
102 Fraser River estuary species at risk of extinction, researchers warn

UBC team develops $381-million strategy to combat crisis, boost economy

Most Read