Le Château petitioned for protection under the Companies’ Creditor Arrangement Act (“CCAA”) of Canada in October of 2020 and engaged Hilco Streambank to sell its intellectual property and related assets. The assets included domain names, trademarks, customer data, publicly listed entity and associated tax attributes, customer data, social media accounts, inventory, apparel designs, marketing images, store and warehouse fixtures, and toll-free numbers. PricewaterhouseCoopers oversaw the administration of the CCAA proceeding as court-appointed monitor.
Le Château was a beloved Canadian specialty retailer and manufacturer of exclusively designed apparel, footwear, and accessories for contemporary and style-conscious women and men. It held an important role in defining Canadian fashion throughout its more than 60-year history. At its peak, the retailer operated hundreds of brick-and-mortar locations throughout every Canadian province and built a successful eCommerce presence at www.lechateau.com.
Hilco Streambank collaborated closely with all constituents throughout the sale process, including the monitor, the company’s management, the court-appointed chief restructuring officer, the secured lender, and the inventory liquidator. Throughout the COVID-induced, extended inventory liquidation, Hilco Streambank devised a creative campaign to maximize the value of all available assets, including the company’s public entity and remaining inventory.
Hilco Streambank assisted in negotiating and documenting a transaction in which the company sold all of its intellectual property and brand assets, as well as substantially all remaining inventory and FF&E, to Suzy Shier, a Canadian women’s fashion retailer with over 130 locations across Canada. The deal closed in June, 2021.