All 121 Le Château stores across Canada and its e-commerce platform are shutting down.
The Canadian fashion retailer warned back in August that it might not be able to stay in business as the coronavirus pandemic had strained its ability to return to profitability.
Gordon Brothers and Hilco Global, through its Canadian division Merchant Retail Solutions, said that they were hired to oversee store closing sales per a liquidation order via Canada’s Companies’ Creditors Arrangement Act, the equivalent of a bankruptcy in the U.S.
The 60-year-old retailer sells apparel for both men and women, while its e-commerce platform served customers in the U.S. and Canada. As the company winds up operations, apparel, shoes, boots and accessories are 40 percent off, while dresses and handbags are 30 percent off.
“We encourage consumers to shop early to take advantage of the best selection of products and great savings available throughout the stores and website. New arrivals in seasonal merchandise are also on sale just in time for the holiday season. Shop gifts that are sure to delight everyone on your shopping list at incredible savings,” a spokesperson for the liquidation joint venture group said.
For the quarter ended April 25, the net loss widened to 13.4 million Canadian dollars ($10.1 million) from a loss of 10.8 million Canadian dollars ($8.2 million) a year ago on a 51.0 percent decline in net sales to 17.7 million Canadian dollars ($13.4 million).
Le Château had reached an agreement with landlords on pandemic-affected rent payments, but the sticking point was whether it would be able to refinance.