Iconic Canadian clothing retailer Le Chateau announced Friday it will be closing the doors at all of its stores in the country, including one in Stone Road Mall.
In a press release sent Friday, the 60-year-old Canadian clothing retailer said it has filed an application for protection under the Companies' Creditors Arrangement Act as it prepares to liquidate its assets and wind down operation of the company.
Kevin Knight, general manager of Stone Road Mall, said the retailer has not yet given its notice for what date it will close its store in the mall.
Management and board of the company came to the decision that the company can no longer continue operations as a going concern, the company said in the news release.
The company’s current staffing complement includes 900 retail employees in 123 stores across Canada, as well as 500 employees at its head office in Montreal.
"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 said the retail industry has faced numerous challenges due to the ongoing COVID-19 pandemic.
“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,” said the company in the release. “Regrettably, these circumstances leave the Company with no option other than to commence the Liquidation process.”
The company made efforts to refinance or sell to a third party but was unsuccessful.
Le Chateau is the latest in a number of Canadian retailers that announced during the pandemic that they were closing up shop or downsizing, including Aldo Group Inc., David’s Tea Inc. and Reitmans Canada Ltd.
If the CCAA application is granted, Le Chateau will obtain interim financing from Wells-Fargo Finance Corporation Canada, which the company said will allow it to fund its post-filing working capital requirements during the liquidation and the CCAA proceedings.
