Le Chateau founder and wife leave insolvent company as it prepares to close doors

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MONTREAL — Le Chateau Inc. says its founder and his wife have left the insolvent company as it prepares to close its doors.

Herschel Segal and his wife, Jane Silverstone Segal, resigned as directors effective Wednesday.

Silverstone Segal had ceased to be board chairwoman and chief executive effective Oct. 26, shortly after it obtained creditor protection.

The Montreal-based company thanked them for their "contributions, efforts, service and dedication" over the years.

Le Chateau is liquidating as it prepares to close after about 60 years of operation.

Segal started the company in the late 1950s and later co-founded DavidsTea, which is also in creditor protection but is restructuring under the leadership of daughter Sarah.

The clothing brand became a mall staple and a hit with young shoppers in the 1980s and '90s before foreign retailers like H&M and Zara entered the Canadian market and caused trouble for Le Chateau and other Canadian clothing names.

This report by The Canadian Press was first published Dec. 17, 2020.

The Canadian Press