NEW YORK — A U.S. advisory firm is hoping that Canadian clothing retailer Le Chateau will rise from the ashes of insolvency.
Hilco Streambank says Le Chateau's e-commerce platform, brand assets and some locations are available for purchase through the Companies' Creditors Arrangement Act proceedings.
Expressions of interest are due April 7 with the sale being subject to approval by the Quebec Superior Court.
The 60-year-old Montreal-based retailer filed for creditor protection last October, joining several companies that have been affected by the impact of COVID-19 and a change in consumer tastes.
Le Chateau is in the process of liquidating its more than 100 stores across Canada.
Hilco says the company's e-commerce business, including proprietary technology accounted for $21.7 million or 13 per cent of gross revenues in fiscal 2020. Online sales increased 17 per cent between fiscal 2019 and 2020.
“Le Chateau is well-known as Canada’s leading dress and occasion retailer,” Hilco executive vice-president David Peress said.
“The brand boasts a well-defined and accepted fashion sensibility and point of view with appeal to women in Canada and the US.”
A potential buyer has the opportunity to select retail locations to maintain a retail presence, a Hilco investor fact sheet says.
The retailer's main customer base were women 25 to 44 years of age. About 30 per cent of its clothing has been manufactured in its Montreal facility.
Le Chateau's intellectual property includes 80 internationally registered trademarks, 60 years of goodwill, a database of nearly 500,000 active customers, 18 domain names and social media accounts.
This report by The Canadian Press was first published March 16, 2021.
The Canadian Press
Note to readers: This is a corrected story. Previous version said the online business is scheduled to end Friday at 5 p.m. in para 5.
