Canadian clothing retailer Le Château Inc. announced Friday that it is seeking court protection from creditors to allow it to shut down and liquidate its assets after nearly 60 years of operations.
The company, which employs about 1,400 people across 123 retail stores across Canada and at its Montreal headquarters, said it can no longer continue its operations as a going concern.
“The retail industry faced numerous challenges due to the ongoing COVID-19 pandemic and the second wave currently hitting our communities across Canada,” the company said in a press release.
The impact of the second wave on consumer demand for Le Château’s holiday party and occasion wear, which represents the core of its offering, has diminished the company’s ability to pursue its activities, the statement added.
“Regrettably, these circumstances leave the Company with no option other than to commence the liquidation process,” the statement said.
Le Château’s application under the Companies’ Creditors Arrangement Act will be heard Friday by a Quebec court.