Canadian speciality retailer and manufacturer of apparel footwear and accessories Le Château is liquidating with all 121 stores set to close.
Gordon Brothers and Hilco Global have been retained to conduct store closing sales for Le Château Inc, starting 2 November.
The move comes after the Québec Superior Court approved an amended and restated initial order and a liquidation order pursuant to the companies’ Creditors Arrangement Act permitting it to proceed with the sale of its assets and wind-down of its operations.
In October, the retailer filed for bankruptcy protection with Canadian courts, its business having been hit particularly hard by the Covid pandemic.
Its recent second-quarter results showed a year-on-year sales decline of 70% to $14.7m from $49.7m a year prior. Net earnings amounted to $337,000, compared to a net loss of $305,000.
Le Château will remain fully operational throughout the liquidation process and physical stores are expected to remain open in conformity with provincial and regional guidelines.