Montreal clothing retailer Le Château has announced it will shutter another 40 stores across the country as sales continue to decline.

The company made the announcement in its year-end financial statement, which showed a net loss of $6.9 million for the fourth quarter of 2015. The company has been facing a decline in sales for the past year and closed 11 stories in 2015 to help “recalibrate” its retail network. By closing the underperforming stores, Le Château hoped to rebound in 2016, but posted a loss for the entire year.

Photo Credit: Le Chateau

As of Jan 30, 2016, the company operated 211 stores, including 65 fashion outlets stores, compared to 222 stores and 42 outlets in the previous year. Because of the financial loss, the company is planning to close another 14 stores in 2016 and over the next three years a total of 40 stores will be closed. The company says these stores will predominantly be fashion outlet stores.

The clothing retailer lost $35.7 million for the 12 months ended Jan. 31. In 2014 the company reported a loss of $38.7 million.

“Over the past few years, the retail landscape has evolved and consumer shopping habits have changed significantly with e-commerce. In light of this evolution, the high concentration of stores in large urban markets – a successful model in the pre-digital world – is no longer required,” said the company in the statement.

By the end of 2015, the company saw yet another decrease in sales over the previous year, even with 11 fewer stores in operation.