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MIRA INFORM REPORT
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Report No. : |
490525 |
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Report Date : |
08.02.2018 |
IDENTIFICATION DETAILS
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Name : |
LE CHATEAU INC |
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Registered Office : |
105 Marcel-Laurin Boulevard,
Saint-Laurent, Quebec, H4N 2M3 |
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Country : |
Canada |
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Financials (as on) : |
28.01.2017 |
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Date of Incorporation : |
1959 |
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Legal Form : |
Corporation |
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Line of Business : |
Subject designs, imports and
retails a wide range of women's and men's apparel, accessories and footwear. |
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No. of Employees : |
2,500 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A+ |
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Credit Rating |
Explanation |
Rating Comments |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Exist |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List
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Country Name |
Previous Rating (30.06.2017) |
Current Rating (30.09.2017) |
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Canada |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
D |
CANADA - ECONOMIC
OVERVIEW
Canada resembles the US in its market-oriented economic system, pattern of production, and high living standards. Since World War II, the impressive growth of the manufacturing, mining, and service sectors has transformed the nation from a largely rural economy into one primarily industrial and urban. Canada has a large oil and natural gas sector with the majority of crude oil production derived from oil sands in the western provinces, especially Alberta. Canada now ranks third in the world in proved oil reserves behind Venezuela and Saudi Arabia and is the world’s sixth-largest oil producer.
The 1989 Canada-US Free Trade Agreement and the 1994 North American Free Trade Agreement (which includes Mexico) dramatically increased trade and economic integration between the US and Canada. Canada and the US enjoy the world’s most comprehensive and highly balanced bilateral trade and investment relationship, with merchandise trade of $544 billion in 2016, services trade of over $80 billion, and two-way investment stocks of nearly $700 billion. Over three-fourths of Canada’s exports are destined for the US each year. Canada is the largest foreign supplier of energy to the US, including oil, natural gas, and electric power, and a top source of US uranium imports.
Given its abundant natural resources, highly skilled labor force, and modern capital stock, Canada enjoyed solid economic growth from 1993 through 2007. The global economic crisis of 2007-08 moved the Canadian economy into sharp recession by late 2008, and Ottawa posted its first fiscal deficit in 2009 after 12 years of surplus. Canada's major banks emerged from the financial crisis of 2008-09 among the strongest in the world, owing to the financial sector's tradition of conservative lending practices and strong capitalization. Since the fall in world oil prices in 2014, Canada has achieved modest economic growth.
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Source : CIA |
STATUTORY
INFORMATION
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Order: |
LE CHATTEAU INC |
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Address
in the order: |
8300 Decarie Boulevard Montreal
QC HHP2P5 Canada The operator explained that
this address corresponds to an old address of the company. The company moved to
the current address 3 years ago. |
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Legal
Name: |
LE CHATEAU INC |
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Trade
Name: |
Le Château |
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ID: |
521129 |
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Date
Created: |
1959 |
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Date
Incorporated: |
Apr 5 1987 |
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Legal
Address: |
105 Marcel-Laurin Boulevard, Saint-Laurent,, Quebec H4N 2M3 Canada |
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Operative
Address: |
105 Marcel-Laurin Boulevard, Saint-Laurent,, Quebec H4N 2M3 Canada |
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Telephone:
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1- 514 738-7000 Customer Service: 1-877-514-1959/ 1-888-532-4283 |
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Fax: |
1- 514 738-3670 |
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Legal
Form: |
Corporation |
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Email: |
Emilia Di Raddo: emilia.diraddo@lechateau.ca |
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Registered
in: |
Quebec, CANADA |
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Website:
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www.lechateau.com |
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Contact: |
Jane Silverstone Segal,
Chairman and Chief Executive Officer Emilia Di Raddo, President Herschel H Segal, Director |
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Staff: |
As of 2017, Le Château employed
more than 2,500 people worldwide. |
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Activity: |
SIC: 6149 - Retail - Apparel
& Specialty NAICS: 448190 - Other Clothing
Stores |
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BANKS
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On January 15, 2016,
the Company entered into a loan agreement for $10.0 million with a company
that is directly controlled by a director of the
Company, of which $7.5 million was drawn on that date and the balance of $2.5
million drawn on February 12, 2016. The financing is in the form of a secured
loan which bears a variable rate of interest, payable monthly, equal to the
lesser of (i) the prime rate of the Royal Bank of Canada multiplied by two
and (ii) 7.5%. The loan is repayable at maturity on January 31, 2020, and subject
to the terms of its revolving credit facility, may be prepaid, in whole or in
part, at any time. On January 12,
2017, the Company entered into a loan agreement for $1.7 million with a
company that is directly controlled by a director of the Company. The
financing is in the form of a secured loan which bears a variable rate of
interest, payable monthly, equal to the lesser of (i) the prime rate of the
Royal Bank of Canada multiplied by two and (ii) 7.5%. The loan is repayable
at maturity on July 14, 2017, and subject to the terms of its revolving
credit facility, may be prepaid, in whole or in part, at any time. On January 15,
2016, the Company entered into a loan agreement for $10.0 million with a
company that is directly controlled by a director of the Company, of which
$7.5 million was drawn on that date and the balance of $2.5 million drawn on
February 12, 2016. The financing is in the form of a secured loan which bears
a variable rate of interest, payable monthly, equal to the lesser of (i) the
prime rate of the Royal Bank of Canada multiplied by two and (ii) 7.5%. The
loan is repayable at maturity on January 31, 2020, and subject to the terms
of its revolving credit facility, may be prepaid, in whole or in part, at any
time. The loan was measured at its fair value on the date of inception with
an effective interest rate of 9.6%. The fair value of the loan, which
amounted to $8.6 million, was estimated using discounted future cash flows.
The difference between the principal amount of the loan and the fair value
was recorded as contributed surplus. On January 12,
2017, the Company entered into a loan agreement for $1.7 million with a
company that is directly controlled by a director of the Company. The
financing is in the form of a secured loan which bears a variable rate of
interest, payable monthly, equal to the lesser of (i) the prime rate of the
Royal Bank of Canada multiplied by two and (ii) 7.5%. The loan is repayable
at maturity on July 14, 2017, and subject to the terms of its revolving credit
facility, may be prepaid, in whole or in part, at any time. The loan was
measured at its fair value on the date of inception with an effective
interest rate of 11.5%. The fair value of the loan, which amounted to
$1.6 million, was estimated using discounted future cash flows. The
difference between the principal amount of the loan and the fair value was
recorded as contributed surplus. On November 10,
2016, the Company entered into a loan agreement for $2.0 million with a
Canadian chartered bank. The demand loan was unsecured, bore interest at an
annual rate based on Canadian prime rate plus 1.0% and was repaid on December
15, 2016. The loan was guaranteed by a director of the Company. Subsequent to
year-end, on February 15, 2017 and March 8, 2017, the Company entered into
loan agreements for $2.0 million and $2.5 million,
respectively, with a company that is directly controlled by a director of the
Company. The financing is in the form of secured loans which bear a variable
rate of interest, payable monthly, equal to the lesser of (i) the prime rate
of the Royal Bank of Canada multiplied by two and (ii) 7.5%. The loans are
repayable at maturity on July 14, 2017, and subject to the terms of its
revolving credit facility, may be prepaid, in whole or in part, at any time. |
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HISTORY
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The company was founded in 1959 by Herschel Segal |
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Key
Developments: |
The company began as a menswear store in downtown Montreal Victoria
Square. In 1962, Le Château added women's clothing, shortened the name to
"Le Château", and switched to selling imported European fashions.
The store imported from Carnaby Street in London, a fashion centre at the
time, as well as other imports such as French suits and Italian turtlenecks. In December 1983, Le Château had its initial public offering on the
Toronto Stock Exchange (TSX). It raised $7.3 million. By the early 1990s, Le
Château had 160 stores and had switched to doing most of its design and
manufacturing itself. In the early 1990s, there was a prolonged recession in
Canada which hurt most business in the clothing industry. In the mid 90s Le Château experimented briefly with Goth styled
clothing and in 1997, it launched a short lived adolescent girls brand
"Jr. Girls." By 1999, the company's stock fell to an eight-year low and the company
took a large quarterly loss of $1.3 million in the three months ended July
29, 2000, compared with a profit of $1.1 million a year earlier. With many US retailers expanding into Canada, including competitor
Express, and fast fashion stores such as H&M and Zara gaining market
share, Le Château relaunched their brand in 2012. The company went from
apparel for young shoppers to “new concept” stores carrying better quality,
grown-up clothes at various price points. The rebranding was complete with a
new logo and new white, sterile, more upscale stores, with nickel fixtures
and glass shelving. In 2014, Le Château launched a partnership with Dress For Success, a
non-profit company to help economically disadvantaged women by providing them
with interview attire. In 2017, Le Château delisted from the Toronto Stock Exchange, and
relisted on the TSX Venture Exchange, because it no longer met the Toronto
Stock Exchange's listing requirements. |
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PRINCIPAL
ACTIVITY
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Le Château Inc. is a fashion
company in Montreal, Quebec, Canada, that designs, imports and retails a wide
range of women's and men's apparel, accessories and footwear. |
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Products/Services description: |
LE CHÂTEAU is a Canadian
specialty retailer and manufacturer of contemporary fashion apparel,
accessories, and footwear for women and men of all ages. PRODUCTS: New Arrivals Dresses Tops Sweaters & Cardigans Outerwear Blazers & Vests Pants Skirts Accessories Blazers, Jackets & Vests Shirts Knits & Tees Ties & Bow Ties Shoes Jewellery Hats, Gloves & Scarves Hair Belts & Sashes Bags & Wallets Sunglasses Tights & Socks |
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Brands: |
NA |
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Sales are: |
Wholesale and Retal |
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Clients: |
National and International
companies, as well as the population in general |
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Suppliers: |
Arihant Industries Inc. India Needle Creations India Saturn Fashion Holdings Co.,
Ltd. China |
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Operations area: |
National and International |
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The company imports from |
India and China |
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The company exports to |
USA, Asia and Middle East |
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The subject employs |
As of 2017, Le Château employed
more than 2,500 people worldwide. |
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Payments: |
Regular |
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LOCATION
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Headquarters
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105 Marcel-Laurin Boulevard, Saint-Laurent,, Quebec H4N 2M3 Canada |
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Comments: |
NA |
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Branches: |
The company sells directly to
customers from 211 retail stores in Canada, one in the New York metropolitan area,
as well as five throughout the United Arab Emirates and Saudi Arabia. |
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Main
Competitors |
H & M Hennes & Mauritz
AB Company Information Mäster Samuelsgatan 46a Stockholm, Stockholm, 111 57
Sweden +46-87965500 La Senza Corporation Company Information 1608 Boul Saint-Regis Dorval, QC, H9P 1H6 Canada (514) 684-7700 ZARA ESPAÑA SA Company Information Avenida Deputacion (Edif.
Inditex), S/N Arteixo, La Coruña, 15142 Spain +34-981185400 |
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Related
Companies: |
NA |
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GROUP STRUCTURE AND SUBSIDIARY COMPANIES
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Listed at the stock exchange: |
YES Stock Exchange: TSX Venture Stock Symbol: CTU |
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Market Capital: (All numbers in CAD) |
5.4M |
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Outstanding Shares: (All numbers in CAD) |
29.96M |
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Shareholders: (All numbers in CAD) |
Major Shareholders: FUNDS:
INSTITUTIONS:
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Management: |
Jane Silverstone Segal, Chairman and Chief Executive
Officer Emilia Di Raddo, President and Director David Martz, Director Herschel H Segal, Director Franco Rocchi, Senior Vice President of Sales &
Operations Johnny Del Ciancio, Vice President of Finance and
Secretary Courtenay Fishman, Vice President of Creative
Direction |
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FINANCIAL
INFORMATION
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We attach the company´s latest financial statements. |
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LEGAL
FILINGS
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Patents |
No records found |
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Trademarks
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CHATEAUWORKS MEN'S [ , ] CLOTHING, NAMELY, SHIRTS, SWEATERS,
SUITS, SPORTS JACKETS, TOPCOATS, PANTS, COATS, VESTS, T-SHIRTS, BLAZERS,… Owned by: LE CHATEAU INC Serial Number: 75474249 C handbags, purses, wallets, billfolds, umbrellas Owned by: LE CHATEAU INC Serial Number: 75497962 C Handbags, purses, wallets, billfolds, umbrellas Owned by: LE CHATEAU INC Serial Number: 75498138 JUNIOR GIRL LE CHATEAU HANDBAGS, PURSES, WALLETS, BILLFOLDS, UMBRELLAS Owned by: LE CHATEAU INC Serial Number: 75593867 LE CHATEAU ARMOR JEANS DENIM PRODUCTS HANDBAGS, PURSES, WALLETS, BILLFOLDS, UMBRELLAS Owned by: LE CHATEAU INC Serial Number: 75716987 Image Trademark HANDBAGS, PURSES, WALLETS, BILLFOLDS, UMBRELLAS Owned by: LE CHATEAU INC Serial Number: 75716988 Image Trademark HANDBAGS, PURSES, WALLETS, BILLFOLDS, UMBRELLAS Owned by: LE CHATEAU INC Serial Number: 75716992 RED SQUAD MEN'S CLOTHING, NAMELY, SHIRTS, SWEATERS, [SUITS,] SPORTS
JACKETS, TOPCOATS, PANTS, COATS, [JUMPSUITS,] VESTS, T-SHIRTS,… Owned by: LE CHATEAU INC Serial Number: 75775897 RED SQUAD Men's clothing, namely - shirts, sweaters, suits,
sports jackets, topcoats, pants, coats, jumpsuits, vests, T-shirts, blazers… Owned by: LE CHATEAU INC Serial Number: 75779927 ARMOR JEANS MEN'S, WOMEN'S AND CHILDREN'S CLOTHING, NAMELY,
SHIRTS, SWEATERS, SUITS, SPORTS JACKETS, TOPCOATS, DRESSES, PANTS, COATS… Owned by: LE CHATEAU INC Serial Number: 76388460 RS MEN'S CLOTHING, NAMELY, SHIRTS, SWEATERS, SUITS,
SPORTS JACKETS, TOPCOATS, PANTS, COATS, JUMPSUITS, VESTS, T-SHIRTS, BLAZERS… Owned by: LE CHATEAU INC Serial Number: 76393779 JUNIOR GIRL SUNGLASSES, MOUSE PADS Owned by: LE CHATEAU INC Serial Number: 76574266 LCP sunglasses Owned by: LE CHATEAU INC Serial Number: 77940118 |
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Cases |
Alfoldi v. Le Chateau Inc., 2013 HRTO 1927 (CanLII) Date: 2013-11-20 File number: 2013-15570-I Citation: Alfoldi v. Le Chateau
Inc., 2013 HRTO 1927 (CanLII), <http://canlii.ca/t/g21wp>, retrieved on
2018-02-06 Serrano v. Le Chateau Inc., 2012 HRTO 1738 (CanLII) Date: 2012-09-14 File number: 2012-11536-I Citation: Serrano v. Le Chateau
Inc., 2012 HRTO 1738 (CanLII), <http://canlii.ca/t/fsrf8>, retrieved on
2018-02-06 |
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OFAC Sanctions List Search |
The company is not listed in the OFAC list. |
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SUMMARY
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Founded in 1959, Le Château Inc. is a fashion
company in Montreal, Quebec, Canada, that designs, imports and retails a wide
range of women's and men's apparel, accessories and footwear. As of 2017, Le Château employed more than 2,500
people worldwide. The company imports from India and China, and
exports to USA, Asia and Middle East, operating within national and
international markets. This has been an ACTIVE company incorporated in
Canada in 1987. |
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RISK
INFORMATION
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DEBTS |
Controlled |
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PAYMENTS |
Regular |
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CASH
FLOW |
Normal |
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STATUS |
ACTIVE |
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INTERVIEW |
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NAME |
Sarah |
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POSITION |
Operator |
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COMMENTS |
She confirmed legal name, trade
name, legal address, telephone, website, principal activity and operations
area. She explained that the
operative address of the company is the following: 105 Marcel-Laurin Boulevard, Saint-Laurent,, Quebec H4N 2M3 Canada She explained that the address
in the order corresponds to an old address of the company. The company moved
to the current address 3 years ago. She refused to provide neither
staff number nor information about major holders. |
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FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 64.14 |
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1 |
INR 89.50 |
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Euro |
1 |
INR 79.43 |
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CAD |
1 |
INR 51.09 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
: |
NIY |
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Report Prepared
by : |
SYL |
RATING EXPLANATIONS
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on
secured terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is
calculated from a composite of weighted scores obtained from each of the major
sections of this report. The assessed factors are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.