Le Château going out of business, blames COVID-19

Retailer Le Château is seeking court protection from its creditors while it winds down its operations and liquidates its assets.

The Montreal-based fashion chain with 123 locations across Canada and 1,400 employees said in a release Friday that it has applied for protection from its creditors under the Companies’ Creditors Arrangement Act, or CCAA.

In a release, the company’s management said it had “come to the very difficult decision that the company can no longer continue its operations as a going concern after having used its best efforts over the preceding months, with the assistance of professional advisers, to refinance or sell the company to a third party that would continue operating the business.”

The chain is just the latest Canadian retail brand to file for CCAA under COVID-19, including clothier Reitmans, drink seller DavidsTea and shoe retailer Aldo.

More to come.

Read more at CBC.ca