THUNDER BAY -- The city is losing another long-standing national clothing outlet.
The Montreal-based company on Thursday announced its intention to seek protection under the Companies Creditors Arrangement Act and plans to close all 123 of its locations, including one at Intercity Shopping Centre. The company cited the challenges of the pandemic and the second wave of COVID-19 hitting many communities as an underlying factor.
"Its already evident impact on consumer demand for Le Chateau’s holiday party and occasion wear, which represents the core of our offering, has diminished Le Château’s ability to pursue its activities. Regrettably, these circumstances leave the Company with no option other than to commence the liquidation process," reads a statement posted on the company's corporate website.
About 1,400 people are expected to lose their job as a result.
Stores are expected to remain open through the liquidation process.
The mall has been hard hit in recent years, losing anchor tenants Lowe's and Sears. Marshalls did take over a portion of the former Sears location.
Le Chateau says it looked into means of refinancing or finding a third party to operate th company, but was unsuccessful. The company has been in business since 1959.
