Le Chateau liquidation starts with discounts available at stores and online

CTV National News: 'Le Chateau' folds Montreal-born company Le Chateau is closing all 123 of their stores in Canada unable to survive the pandemic. Vanessa Lee reports.

The liquidation of Le Chateau is underway, with discounts of 20 to 40 per cent available at all 121 stores and online.

Le Chateau's 900 employees will continue to help customers during the liquidation at stores that will remain open as permitted by provincial and regional COVID-19 guidelines.

Gordon Brothers Canada and Merchant Retail Solutions, ULC have been retained to conduct the liquidation for the 60-year-old company that is winding down operations after obtaining creditor protection last month.

Le Chateau has spent much of the COVID-19 pandemic trying to refinance or sell its business to a third party that would keep it in operation, but the attempts were unsuccessful.

The retailer was started in the late 1950s by Herschel Segal, who went on to co-found DavidsTea Inc.

The clothing brand eventually became a mall staple and a hit with young shoppers in the 1980s and '90s before foreign retailers like H&M and Zara arrived.

This report by The Canadian Press was first published Nov. 2, 2020.