Sears Canada is applying to liquidate all remaining stores

Cheryl Sanders
October 10, 2017

Troubled department store chain Sears Canada plans to close remaining stores and liquidate all assets, the company announced October 10.

The retailer has approximately 12,000 employees, three-quarters of whom are part-time, Shaffer added.

"Sears Canada, with the recommendation of its advisers and approval of the monitor, FTI Consulting Inc., is seeking an order to commence a liquidation that would result in a wind-down of its business following court approval", Sears Canada said in a release.

Sears last week received a revised bid from a group led by its executive chairman Brandon Stranzl to buy the business.

Like other major department stores, Sears Canada was the victim of changing consumer habits as well as increased competition from online merchants and U.S. discount retailers entering the Canadian market.

The court is expected to hear the motion on October 13 and if successful, liquidation sales will start on October 19 and continue for 10-14 weeks.

The news today affects 64 full-line stores, seven Sears Home stores and 49 Hometown stores.

Company officials had hoped to find a buyer that would take over the remaining stores, but the search was unsuccessful. Of the roughly 800 employees in Sears Canada's head office, the vast majority will exit next week, he said.

Sears Canada says it regrets the pending outcome and the resulting loss of jobs and store closures.

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

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