Local Community Advertising
Yet another Canadian retailer has called it quits in 2020.
This time it's Montreal-based fashion retailer Le Chateau, which has occupied a storefront in Orchard Park Mall for decades.
On Friday, the company announced it will be closing 123 stores and cutting 1,400 employees who work in stores and at the company’s head office.
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 company said 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 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.
With files from the Canadian Press.
Local Community Advertising