Le Chateau is closing its stores across Canada; 1400 jobs will be lost
The Quebec-grown fashion brand for the past 60 years will be closing its 123 stores across Canada.
In a release the company stated, “The retail industry faced numerous challenges due to the ongoing COVID-19 pandemic and the second wave currently hitting our communities across Canada. 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. Regrettably, these circumstances leave the Company with no option other than to commence the Liquidation process.”
Le Chateau was approved for protection under the Companies’ Creditors Agreement Act (CCAA) on Friday, October 23rd, 2020.
The Gordon Brothers Canada ULC and Merchant Retail Solutions ULC were appointed as the company’s consultants to implement the liquidation and PricewaterhouseCooper Inc. was appointed as monitor in the CCAA proceedings.
The company obtained interim financing from Wells Fargo Capital Finance Corporation Canada to help fund its post-filing capital requirements.
Le Chateau plans to remain fully operational as it liquidates its stores, conforming with regional and provincial guidelines.
This means that its 1400 employees, which include 900 retail store employees and 500 head office employees, will lose their jobs.
You can read both press releases here:
Release 1
Release 2
guhuza.com is a full-service recruitment organization, including guhuza.com Website, Career Fairs, full-service Recruitment Division and Outplacement Services. The local focus and advanced features make guhuza.com a vital asset for both job seekers and employers within the Greater Toronto Area. Visit our Online Career Centre for additional articles on Career Development, Personal Branding and more!
In a release the company stated, “The retail industry faced numerous challenges due to the ongoing COVID-19 pandemic and the second wave currently hitting our communities across Canada. 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. Regrettably, these circumstances leave the Company with no option other than to commence the Liquidation process.”
Le Chateau was approved for protection under the Companies’ Creditors Agreement Act (CCAA) on Friday, October 23rd, 2020.
The Gordon Brothers Canada ULC and Merchant Retail Solutions ULC were appointed as the company’s consultants to implement the liquidation and PricewaterhouseCooper Inc. was appointed as monitor in the CCAA proceedings.
The company obtained interim financing from Wells Fargo Capital Finance Corporation Canada to help fund its post-filing capital requirements.
Le Chateau plans to remain fully operational as it liquidates its stores, conforming with regional and provincial guidelines.
This means that its 1400 employees, which include 900 retail store employees and 500 head office employees, will lose their jobs.
You can read both press releases here:
Release 1
Release 2
guhuza.com is a full-service recruitment organization, including guhuza.com Website, Career Fairs, full-service Recruitment Division and Outplacement Services. The local focus and advanced features make guhuza.com a vital asset for both job seekers and employers within the Greater Toronto Area. Visit our Online Career Centre for additional articles on Career Development, Personal Branding and more!
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