Le Château going out of business, blames COVID-19

Andrew Cummings
October 26, 2020

Millennials in Quebec probably have fond memories of shopping at Le Château, a retail clothing chain - founded in Montreal 60 years ago - that epitomized 2000s fashion in the province.

The chain has 123 stores across Canada, including one at Devonshire Mall in Windsor and one at White Oaks mall in London.

Le Chateau Inc. says it is preparing to shut down and liquidate its assets, affecting hundreds of employees across Canada.


"Management and the Board of Directors of the Company have come to the very hard decision that the Company can no longer continue its operations", reads a release from the once-thriving homegrown retail brand.

"Regrettably, these circumstances leave the Company with no option other than to commence the liquidation process", the statement said.

Le Chateau has 1,400 employees across the country, including 500 staff at its head office.


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.

It looks like the company faced numerous challenges because of COVID-19, with the second wave not helping their cause. However, as we see the trend towards more sustainable and ethical practices in retail and away from fast fashion, the brand's prominence in the Canadian retail space diminished.

The company will remain "fully operational" and the stores are expected to remain open throughout the liquidation process.


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