Le Chateau Is Going Bankrupt In Canada & Already Starting To 'Wind Down Operations'
One of the country's biggest brands may be bidding Canadians farewell soon as they prepare to cease operation.
Le Chateau, a fashion company founded in 1959 in Quebec, has filed to have their assets liquidated in an attempt to close down their stores after citing low sales, largely due to the pandemic.
The retailer wants the protection of the court to proceed with their plans after just recently filling the "CCAA Application" known as the Companies' Creditors Arrangement Act.
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Regrettably, these circumstances leave the Company with no option other than to commence the Liquidation process.
Le Chateau Inc
This will be heard by the Superior Court of Quebec Friday.
If approved, Le Chateau can get some financial relief that will allow the company to pay for its "post-filling 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.
In addition, with Canadians spending less money this holiday and opting to stay home come winter season, Le Chateau could face even greater trouble.
The report says the company largely depends on the holiday season "which represents the core of our offering" since consumers tend to buy holiday wear for Christmas parties, work parties and to bring in the New Year.
Le Chateau has 123 stores all over Canada and said it will keep its e-commerce website going and will still remain fully open through the liquidation process.