It’s no secret that even before the pandemic, retail was a tough business. However, now that we’re well into the COVID-19 crisis, brands that might have been struggling pre-pandemic are definitely falling on tough times now. One brand that fits into that category is Le Chateau.
CTV News is reporting that the Canadian retailer isn’t sure if it will be able to remain in business for another year.
The chain released its latest quarterly earnings which included a sales decline of 6.5 percent year-over-year, to $175.9 million. However, according to The Sault Star, online sales climbed up by 20.8%. Even though Le Chateau is reopening stores, it says it likely won’t be able to resume normal operations until 2022.
While Le Chateau revealed that it might not last another year, the retailer hasn’t made any plans to close any of its 129 stores in eight provinces.
Le Chateau is currently in talks with existing lenders and is also talking to landlords regarding rent relief but the retailer isn’t the only one not paying rent. Tea retailer David’s Tea hasn’t paid rent since its stores closed temporarily back in March.
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