After 60 years in operation, Le Chateau Inc. is seeking court protection from creditors to allow it to liquidate its assets and close its stores.

The Montreal-based company said Friday that it has spent much of the COVID-19 pandemic trying to refinance or sell the business to a third party that would keep it in operation, but was unsuccessful.

B次元官网网址淚ts already evident impact on consumer demand for Le ChateauB次元官网网址檚 holiday party and occasion wear, which represents the core of our offering, has diminished Le ChateauB次元官网网址檚 ability to pursue its activities,B次元官网网址� the company said.

B次元官网网址淩egrettably, these circumstances leave the company with no option other than to commence the liquidation process.B次元官网网址�

The companyB次元官网网址檚 application for protection from creditors under the CompaniesB次元官网网址� Creditors Arrangement Act (CCAA) will be heard by a Quebec court on Friday.

Le Chateau said it intends to remain fully operational as it liquidates its 123 stores, but the eventual closures will mean the end of about 1,400 jobs B次元官网网址� 500 at its head office and 900 at stores.

B次元官网网址淲e 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,B次元官网网址� the company said.

Le Chateau expects Gordon Brothers Canada ULC and Merchant Retail Solutions ULC to be appointed as consultants to implement the liquidation and PricewaterhouseCooper Inc. to become its monitor in CCAA proceedings.

If Le ChateauB次元官网网址檚 CCAA application is granted, the company will obtain interim financing from Wells Fargo Capital Finance Corp. Canada to help it fund post-filing working capital requirements.

The companyB次元官网网址檚 application comes after several other Canadian retailers have shuttered or downsized operations in the wake of the pandemic.

Reitmans Canada Ltd., Aldo Group Inc., DavidsTea Inc., Mountain Equipment Co-operative, Moores the Suit People Corp. and LauraB次元官网网址檚 Shoppe Inc. are among the dozens of retailers that have all filed for CCAA.

The Canadian Press

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