Beloved early-aughts clothing brand Le Château has announced plans to shut down all its stores as they file for CCAA protection.

According to the Canadian Press, the Montreal-born retailer cited lack of sales due to the COVID-19 pandemic as their reason for filing, with liquidation as the only option.

“Management and the Board of Directors of the Company have come to the very difficult decision that the Company can no longer continue its operations,” the company stated in a press release. “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 Château’s holiday party and occasion wear, which represents the core of our offering, has diminished Le Château’s ability to pursue its activities.”

Le Château is the latest major Canadian retailer to file for CCAA protection, joining Reitman’s and Aldo. It had been around for six decades and has approximately 123 locations across the country, as well as an e-commerce website.

The brand currently has 1,400 employees, including 500 head office staff. Its court case will be heard today in Quebec.


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