Clothing retailer le Château to Close its doors

Le Château said Friday it has obtained court protection from its creditors while it winds down its operations and liquidates its assets. The Montreal-based clothing retailer, with 123 locations in Canada and 1,400 employees, said it has applied for protection from its creditors under the Companies’ Creditors Arrangement Act. The company came “to the very difficult decision that (it) can no longer continue its operations as a going concern after having used its best efforts over the preceding months ... to refinance or sell ... to a third party that would continue operating the business.” It blamed the COVID-19 pandemic that has had an “evident impact on consumer demand.” In the three months ended July 25, Le Château posted $14.7 million in sales, down from almost $50 million in the same 2019 period, says Yahoo Finance.