Fashion clothing retailer Le Chateau blames COVID-19 for a decision to eventually close its stores.
The Montreal-based company is seeking court protection. The firm, which has been in business for 60 years, said on Friday that efforts during the pandemic to try and refinance or sell the business to a third party to keep it in operation were unsucessful.
A Quebec court was to hear the company’s application for protection from creditors on Friday.
There is no word when Le Chateau’s 123 stores will close, but business will continue during the liquidation process. When the lights are turned out, this will mean the end of about 1,400 jobs—at 900 stores and 500 at its head office.
“We regret the impact this will have on our people and can assure you that we explored all options available to us prior to taking this difficult decision,” the company said.
Le Chateau stores include one in the Georgian Mall in Barrie and at Upper Canada in Newmarket.
Banner photo: Canada newswire