MONTRÉAL, QC, June 25, 2021 /CNW Telbec/ - Le Château Inc. (NEX: CTU.H) ("Le Château" or the "Company") announces that, in connection with its creditor protection proceedings under the Companies' Creditors Arrangement Act (the "CCAA") and its previously announced sales solicitation process, the Company and its subsidiary, Château Stores Inc., received authorization from the Québec Superior Court (Commercial Division) (the "Court"), on June 22, 2021, to complete the sale of all of their intellectual property as well as certain other assets to Suzy's Inc. ("Suzy's") pursuant to an asset purchase agreement (the "APA") entered into between the Company, Château Stores Inc. and Suzy's on June 18, 2021 (the "Transaction"). Consequently, the Company and Château Stores Inc. today completed the Transaction.
The net proceeds from the Transaction are being reported upon by the Court-appointed monitor, PricewaterhouseCoopers LLP (the "Monitor"), and will be utilized or released pursuant to current orders of the Court and such further orders of the Court as may be granted from time to time.
Following completion of the Transaction, all of the directors and executive officers of Le Château and Château Stores Inc. have resigned effective upon closing. The Company wishes to thank each of them for their stewardship in guiding the Company through this very difficult corporate transition.
A copy of the APA is available on the Company's SEDAR profile at www.sedar.ca and is also available, along with additional information respecting the CCAA proceedings, on the website of the Monitor at https://www.pwc.com/ca/en/services/insolvency-assignments/le-chateau.html. Readers are urged to consult the full text of all documents available on the Company's SEDAR profile and the Monitor's website for further information.
Profile
Le Château is a Canadian specialty retailer and manufacturer of exclusively designed apparel, footwear and accessories for contemporary and style-conscious women and men.
Suzy's is a national Canadian women's fashion retailer with over 130 locations across Canada, specializing in women's apparel, footwear and accessories at everyday irresistible prices.
Forward-Looking Statements
This news release may contain forward-looking statements relating to the Company and/or the environment in which it operates that are based on the Company's reasonable expectations, estimates and forecasts. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict and/or are beyond the Company's control. A number of factors may cause actual outcomes and results to differ materially from those expressed. These factors also include those set forth in other public filings of the Company. Therefore, readers should not place undue reliance on these forward-looking statements. In addition, these forward-looking statements speak only as of the date made and the Company disavows any intention or obligation to update or revise any such statements as a result of any event, circumstance or otherwise except to the extent required under applicable securities law.
Factors which could cause actual results or events to differ materially from current expectations include, among other things: the risks and uncertainties related to the ongoing proceedings under the CCAA, the liquidation process, health crises & economic downturn, liquidity risks, general economic conditions and normal business uncertainty. The foregoing list of risk factors is not exhaustive. The risks and uncertainties faced by the Company are substantially the same as those outlined in the annual management's discussion and analysis for the year ended January 25, 2020.
SOURCE LE CHATEAU INC.
Emilia Di Raddo, CPA, CA, President, (514) 738-7000; Johnny Del Ciancio, CPA, CA, Vice-President, Finance, (514) 738-7000; MaisonBrison: Pierre Boucher, (514) 731-0000
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