Economy

It's Official, Sears Canada Is Going Out Of Business

It's Official, Sears Canada Is Going Out Of Business

Sears Canada Inc. said Tuesday it is seeking court approval to liquidate its roughly 130 remaining stores, leaving approximately 12,000 employees without a job.

Sears Canada has been in court-approved creditor protection since June 22 and was looking for a buyer for stores that remained open, but was unable to find one.

The company said it made "exhaustive efforts" to try to turn around the business, but that "no viable transaction for the company to continue as a going concern was received".

If Sears Canada gets court approval to begin the process, it expects liquidation sales at its stores would start no earlier than October 19 and continue for 10 to 14 weeks.

Sears in Canada had grown out of a partnership between the Chicago retailer and rival Simpsons in Toronto.

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The move would close all of the stores unaffected by June closures, including the North Bay location.

Litigators for a group of lenders who have provided debtor-in-possession financing to Sears Canada to keep it afloat pushed for a liquidation agreement to be entered into by October 7 at the latest.

Jean Rickli, a senior advisor with retail and marketing consulting firm J.C. Williams Group, said the retailer had taken some positive steps to revitalize the brand in recent years, such as a new logo and utilizing pop-up shops. Simpsons-Sears changed its name to Sears Canada in 1984.

Sears sent Business in Vancouver an email to say that about 12,000 people will lose jobs as a result of the dissolution and that this includes those who work at the 11 stores in the September 30 announcement. "This is an extremely sad day for all of us and certainly not the outcome we wanted".