After years of financial trouble, clothing retailer Le Chateau announced Friday that he had sold his intellectual property and “some other assets” to a Toronto company.
After taking power from the Quebec Superior Court on Tuesday, the Quebec retailer finalized the final sale of its assets to Ontario YM on Friday. The announcement was confirmed by a press release on Friday afternoon.
According to the property purchase agreement we can contact, the sale total is 25 5.25 million. In principle, the proceeds of the transaction should be redistributed among the creditors of the firm.
Debt of about $ 130 million
The retailer accumulated $ 128.9 million in debt, according to a preliminary report released a week after the company filed for defense under the Companies Creditors Arrangement Act (CCAA) in October.
In total, 9 109.9 million is due to secured creditors. The most important of them are: Wells Fargo Capital Finance, with a deficit of $ 59.4 million.
The controller, PricewaterhouseCoopers, mentioned in the file, did not call us back. The same thing happens with chateau management, which, according to its spokesperson, is not available Friday to answer our questions.
Sixty years of history
Herschel H. in Montreal in 1959. Founded by Segal – to whom we are also indebted to David – the company Le Chateau announced the end of its operations in October, while at the same time seeking legal assistance from everything. Shortly afterwards, the company began the process of requesting a sale of its assets.
Toronto-based YM is a private company owned by Cosa-Nova Fashions, a limited partnership owned by its president Michael Goldgrub. YM owns a dozen well-known brands and retailers, including Urban Planet, West 49, Stitches, Aeropostel and Suzie Shearer.