Le Château : Château Provides Update on Filing of Annual and Q1 Financial Statements Due to COVID-19

MONTREAL, June 19, 2020 (GLOBE NEWSWIRE) -- Le Château Inc. (the “Company”) (TSX VENTURE: CTU) today provided an update on the status of the filing of (i) its annual financial statements and management’s discussion and analysis, and related CEO and CFO certificates, for the fiscal year ended January 25, 2020 (the “Annual Documents”) and (ii) its interim financial statements and management’s discussion and analysis, and related CEO and CFO certificates, for its first quarter ended April 25, 2020 (the “Q1 Documents”).

On May 20, 2020, the Canadian securities administrators (“CSA”) announced that they would provide issuers with a 45-day filing extension for filings due or required to be made during the period from June 2, 2020 to August 31, 2020 to allow issuers the time needed to focus on the many other business and financial reporting implications of the COVID-19 pandemic. Due to logistics and delays caused by the COVID-19 virus, the Company will avail itself of such extension and file by no later than August 7, 2020 the Q1 Documents. The filing of the Q1 Documents was originally due by June 24, 2020.

As previously announced on May 22, 2020, the Company is also relying on a 45‑day blanket extension granted by the CSA for the filing of the Annual Documents.

The Company is continuing to work diligently and expeditiously to file the Annual Documents and Q1 Documents and currently expects to have them filed on or prior to the extended filing deadlines of July 6, 2020 and August 7, 2020, respectively. The Company will provide an update via press release on the status of the filing of the Q1 Documents no later than on July 17, 2020. The Company confirms that until the Annual Documents and Q1 Documents are filed, its management and other insiders are subject to an insider trading black-out policy that reflects the principles in section 9 of Canadian National Policy 11-207 - Failure-to-File Cease Trade Orders and Revocations in Multiple Jurisdictions. The Company confirms that (i) since the filing of its interim financial report for the nine months ended October 26, 2019, there have been no material business developments other than those that have been publicly disclosed as required under applicable securities laws and except for the potential impact of the COVID-19 pandemic, and (ii) there has been no material business developments since May 22, 2020 (the date of the Company's news release announcing the delay in filing of the Annual Documents).

While it is still too early to assess the impact of the current pandemic, the Company is actively monitoring the business environment in each of the markets in which it operates. As of the date hereof, the Company has re-opened 89 stores in accordance with provincial and regional governmental guidelines.

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, with an extensive network of 125 prime locations across Canada and an e-com platform servicing Canada and the U.S. Le Château, committed to research, design and product development, manufactures approximately 30% of the Company's apparel in its own Canadian production facilities.

Forward-Looking Statements
This news release includes forward-looking statements relating to the Company and/or the environment in which it operates, including, without limitation, statements relating to the delay of the filing of the Annual Documents and Q1 Documents and the expected timing of filing in the future. These forward-looking statements are based on, among other things, the Company's current expectations. 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 include the ability of the Company to file the Annual Documents and Q1 Documents; the magnitude and length of economic disruption resulting from the worldwide COVID-19 outbreak, including the ability to operate physical stores in conformity with provincial and regional governmental guidelines and timing thereof; liquidity risks; the ability of the Company to continue as a going concern; the ability of the Company to successfully implement its business initiatives and whether such business initiatives will yield the expected benefits; changes in consumer spending; general economic conditions and normal business uncertainty; seasonality and weather patterns; changes in the Company's relationship with its suppliers; fluctuations in foreign currency exchange rates; interest rate fluctuations and changes in laws, rules and regulations applicable to the Company; and the risk factors set forth in other public filings of the Company, including the annual management's discussion and analysis of the Company dated May 27, 2019 and note 2 of the unaudited interim condensed consolidated financial statements of the Company for the nine-month period ended October 26, 2019. The foregoing list of risk factors is not exhaustive and other factors could also adversely affect our results. 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.

For further information
Emilia Di Raddo, CPA, CA, President [phone]
Johnny Del Ciancio, CPA, CA, Vice-President, Finance, [phone]
MaisonBrison:  Pierre Boucher, [phone]
Source:  Le Château Inc.

Source: Le Chateau Inc.

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