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] »