Le Château has made known its intention to liquidate its assets and close down its 123 stores.
The organisation filed an application to seek court’s protection from its creditors and the application is expected to go before Quebec’s Superior Court.
According to Le Château, its board of directors made the “very difficult decision” after trying to refinance or sell off the company over the past few months.
The company said with COVID-19 persistently putting events and celebrations on hold, the demand for Le Château’s holiday party and occasion wear has been drastically affected, as such, the company’s ability to carry on operations has been affected.
Le Château said: “The retail industry faced numerous challenges due to the ongoing COVID-19 pandemic and the second wave currently hitting our communities across Canada.
“Regrettably, these circumstances leave the company with no option other than to commence the Liquidation process.”
“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.
“We thank the millions of Canadians whom we have had the privilege of serving over the past six decades.”
Le Château was founded in Montreal in 1959 and it employs 1,400 Canadians throughout its 123 retail stores and its head office. The company deals in apparel, footwear, and accessories for male and female.
