Le Château gets a hot cash injection from company founder Herschel Segal
Le Château is the butt of many jokes, which is not at all surprising considering its clothing is all too often shoddy club wear at best—when was the last time someone spoke fondly of immodestly unbuttoned shirts (sometimes with embroidery!) and “Euro-fit” slacks? But apparently company founder Herschel Segal still has faith in the brand, since he just invested $10 million of his own money into the company after statements showed it was losing money fast. 2011 profits dipped 5.4 per cent to $70.4 million from $74.5 million in 2010, and the company reports that the loan “will provide the company with additional capital and operational flexibility as all of its existing credit and other facilities remain in place.” Considering Le Château already has an operating line of credit of close to $20 million and an import line of credit of $25 million, it would seem that the brand is confident it can accumulate debt and rise above. It seems that bottle-service wear will live on for another day. Read the entire story [CBC] »
Why would anyone pay the prices they charge for such poorly designed and manufactured merchandise is beyond me.
That’s strange that Le Chateau is described as trashy club wear, because a quick peek inside the store in recent years will prove otherwise. Yes, their clothes are a tad overpriced, but the quality is sound.
I only have a few pieces from Le Chateau, but I love them. They have in fact lasted me (both in style and durability) say, 6 or so years so far? I didn’t pay a lot for them. The styling is definitely modeled after European cuts (as compared to other mall places like the Gap, Banana Republic or Jacob) as they are curvier and more form conscious. That’s why I love those pieces. I don’t club or wear revealing clothes. I don’t know why Le Chateau’s clothing is dubbed as such. I think they should stick to what they are doing. My only complaint is that I wished they used more natural fibres. I’d put them in the same style and quality level as other European chains like Zara or Mango.
It is always surprising to me how unknowleadgable some Canadian writers are regarding their subject matter.
Is Mr. Naulls aware of the following facts:
– Le Chateau has been hiring and promoting young canadian designers (most graduating from Ryerson) for the last 10 years to create the collections that are in the stores.
– Le Chateau manufactures a sizeable portion of the product mix in Canada (contrary to most other retailers).
– Le Chateau has been out of the clubwear business since 1999.
– Le Chateau has been actively promoting and using high qualiy fabrics purchased in Italy and other european countries for at least the past 5 years.
I do not believe that Mr. Naull’s is at all aware of any of these facts. He is too busy promoting US and european brands for fear that promoting or putting a positive spin on a canadian brand might appear declasse to his circle of friends.
How sad that his condescending comments are aimed at Ryerson’s talented young designers. How sad for Canada.
Perhaps 2012 should be the year he actually enters a le chateau store.
Mr. Naulls is obviously misinformed about, biased or did not do his duty as a journalist to research anything about the brand. Sad day for him perhaps (in response to KN).
I agree with KN. It’s sad to see that a Canadian company that employs Canadians, manufactures in Canada, and tries to improve the quality of its merchandise is a target of an uninformed “Hack” with access to national media. Mr.Naulls is a typical example of a navel gazing Torontonian who knows nothing about what is happening outside Ontario and is blinded by his own narrow vision of what a successful Canadian company IS. All should be encouraged to buy Canadian, buy shares in Canadian companies and support the people who run them and work in them; I know I do and will continue in the future. DM
fact #1:Le Chateau has been hiring and promoting young canadian designers (most graduating from Ryerson) for the last 10 years to create the collections that are in the stores.
True so why don’t we see any newness in styles and silhouettes? The designers that Le Chateau hired seem so afraid to create that they are stuck in repeating and knocking off previous successful sellers (styles) adding sometimes a new boring and predictable twist to it.
Fact #2: Le Chateau manufactures a sizeable portion of the product mix in Canada (contrary to most other retailers).
True but what is the ratio as of today compared to few years ago? Le Chateau used to manufacture 60% of all goods in Canada eight years ago; what is it now? 30%? 25%? And honestly, nothing is wrong with China’s goods. They actually have better machineries and factories than us here to produce better quality garments.
Fact #3:Le Chateau has been out of the clubwear business since 1999
I thought so too but still today, when i visit a Le Chateau store, i still see those bright sateen dresses (Jersey Shores like) or men polyester “shinny sateen” shirts. These style of dresses or men shirts appeal to who? I would say mostly to the suburb kind of girl who thinks that wearing a hooker kind of dress for a wedding or to go out in a club is still in style…Obviously and hopefully the cosmopolitan girl/guy dresses differently
Fact #4: Le Chateau has been actively promoting and using high qualiy fabrics purchased in Italy and other european countries for at least the past 5 years.
80% acrylic 20% italian wool? Like really???
Overall Chateau doesn’t have a strong enough brand equity and brand identity to reposition their “brand” as a prestige brand; at least not yet. It feels like every department are not working seamlessly together with the same objective in mind. The marketing objectives of the company; what are they? Are they using the IMC campaign to create a more efficient, effective and cohesive message throughout all channels? The retail mix; is there a clear one? What’s your competitive advantage towards competition? I don’t see any. Maybe the effective supply chain (turnover) but they are not using it to their advantage. I’m done. Good luck Chateau! I really wish you the best for 2012 as i always did.
Wow- I can’t believe that anyone is actually referring to Le Chateau as high quality clothing or considering it a sustainable business. When I was in high school, it was popular for offering inexpensive ‘revealing clothing’. Now in my 30s, it continues to offer the same poor quality clothing at a substantially higher price. Year after year I’m always amazed that this store stays in business. I’ll refrain from referring to stats or justifying the high prices by their keeping the business truly Canadian… at the end of the day, I’m a consumer. I’m a consumer that wants good quality clothing at a cost that’s warranted. The few times I’ve entered the store in the past several years, I’ve encountered clothing that is poorly made with incredibly cheap fabric. Why pay BCBG prices for Stitches-type clothing?!? I won’t even get into the mediocre customer service. I should also mention that I rarely see people actually in the store, even during high traffic times such as boxing day. I’m going to assume that they’ve stayed afloat by jacking up the margin so extensively that they’re able to sell substantially less volume than other retailers. I don’t wish them any success in the future as I feel that they’ve taken advantage of their customers for far too long. Hopefully these people will come to recognize that there are better options out there.
Le Chateau is overpriced crap, their clothes are poorly made and only a very very small percent of their stuff is made in Canada. There is nothing Le Chateau makes that you can’t find elsewhere for less and better quality.
Le Chateau should close and make room for a retail store that people actually want to shop at.
Le Chateau is going Bankrupt!
The day as finally come!
Hurray!!!!
I love le chateau!!! honestly I have never had an item with better quality,and not to mention timeless style! there are items i purchased there in highschool that I still wear….towards the not made in canada mention..what brand does??? I am not even sure roots makes all its products in canada…I love there black dress pants, great feel great price and ultimately timeless style:)
oh and to mention also, my absolute favourite thing to do at the mall is get a latte and peruse le chateau’s dresses, which above and beyond are soooo fabulous!!! all the dresses I have bought from them have been lovely! Little pricey but the quality has been wonderful, I wear them time and time again,and my female friends and family totally pick thru my closet for my le chateau dresses and shoes:)
LE CHATEAU
Atten: Company President, Financial Chief Officer, Company Executive Officer, Supervisor of Customer service: I placed my order on Oct 11th and have been dealing with 6 people since then in the customer service department and have been promised a call back twice. I have all the email responses I have gotten, and yet not one resolution. No one has called me and I still have not received my prepaid return label. They duplicated my order therefore I HAVE TO PAY for return shipping!! (they have said they sent the return label) I am getting the run around here big time! Everyone I speak to says they will take my information or they apologize profusely, but do not follow through with the sincere apology. The return policy is 15 days, and they keep putting me off and putting me off,
I have returned my orders on Oct 23, they shipped Oct 15-16 and now they are not honouring my full return. That is 7=8 days turnover and their return policy is 15 dyas. I am taking action against them and my next step is to contact head office, Doubt that will help the company seems to not care about their customers at all.
This has been a discusting representation of Customer Service and they deserve to go bankrupt, I will never shop in store or online with them again and I am posting it every where I can to save people from being ripped off. Regards.