Le Chateau postpones annual meeting without explanation on eve of gathering

MONTREAL — Embattled clothing retailer Le Chateau Inc. pulled the plug on its meeting of shareholders on the eve of the annual gathering.

The Montreal-based company didn't provide a reason for postponing Thursday's event, saying only it "will provide further updates in due course."

article continues below

When Le Chateau reported its second-quarter results last month, it said the company's ability to continue as a going concerns for the next 12 months "involves significant judgment and is dependent on, among other things, its ability to obtain necessary financing, either from its existing lenders or from other financing sources."

The retailer also said it had reached agreement with landlords regarding rent obligations as of July.

Like other retailers, the 60-year-old company has been hit hard by mall closures and store closures resulting from the COVID-19 pandemic.

Le Chateau saw its sales plunged to $14.6 million in the three months ending July 25, down from $49.7 million a year earlier.

This report by The Canadian Press was first published Oct. 21, 2020.

Read Related Topics

© New West Record