Le Château may be put up for sale

Clothing retailer Le Château Inc. will consider proposals for a merger or the outright sale of its business, the company said Tuesday.

In a statement released before the opening of stock markets, the Montreal-based company said it is evaluating strategic alternatives, including the sale of the company, a merger or a capital reorganization.

Le Château has hired Genuity Capital Markets as its financial adviser. It said the evaluation process could take several months.

"This step is a natural and logical part of our evolution and growth, and we believe that this is the right time to review such opportunities in the best interest of Le Château and all of its shareholders," said company chairman and CEO Herschel Segal.

Le Château has 180 retail locations in Canada, and five more in the New York City area.

Over the past year, shares of Le Château have ranged from a low of $24.71 to a high of $55.75 on the TSX. The stock closed Monday at $47.90.