Sears Canada is Finished

Sears Canada

CBJ — It’s a sad day for shoppers on word that Sears Canada has thrown in the towel having been unable to secure a buyer or develop a plausible business plan that would result in a financial turnaround. The once mighty retail giant has approved a plan to liquidate the assets of the remaining stores in an effort to generate about $300 for its creditors. It now must be granted court approval for the liquidation, which is a mere formality. The end of the store chain means thousands of people will lose their jobs, on top of the thousands who have already been let go.

“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,” the company said in a prepared media release. “The company deeply regrets this pending outcome and the resulting loss of jobs and store closures.”

The liquidation process is expected to begin within the next two weeks following legal approval and would likely last for about three months.

Sears Canada sought court protection from its creditors in June in a last-ditch effort to restructure but no viable plan was able to be found moving forward.

The store chain got its start 65 years ago in an alliance called Simpson-Sears. That association lasted until 1984, when it became Sears Canada.

@CanBizJournal

 

 

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