fashion

Canada’s Le Chateau Inc. seeks bankruptcy protection after 60 years in trade


New York – Montreal-based Le Chateau Inc. stores announced earlier this
week it would seek court protection from creditors and shut down its
stores. The party gear retailer has been 60 years in the trade.

Le Chateau has spent much of the COVID-19 pandemic trying to refinance
or sell its business to a third party that would keep it in operation, but
the attempts were unsuccessful, reported the Canadian edition of Yahoo
Finance.

“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
in a release. “Regrettably, these circumstances leave the company with no
option other than to commence the liquidation process,” the retailer added.

Le Chateau intends to remain fully operational as it liquidates its 123
stores, but the eventual closures will mean the end of about 1,400 jobs —
500 at its head office and 900 at stores. “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.

Its application for protection from creditors under the Companies’
Creditors Arrangement Act (CCAA) was approved by a Quebec court on Friday.
Gordon Brothers Canada ULC and Merchant Retail Solutions ULC were appointed
as consultants to implement the liquidation and PricewaterhouseCooper Inc.
was named monitor in CCAA proceedings.

The company obtained interim financing from Wells Fargo Capital Finance
Corp. Canada to help it fund post-filing working capital requirements.



READ SOURCE

Leave a Reply

This website uses cookies. By continuing to use this site, you accept our use of cookies.  Learn more