End Appears Near for Sears Canada
CBJ — Sears Canada Inc. will seek creditor protection in the courts in the very near future but it seems highly unlikely the retailer will survive.
A subsidiary of Sears Holdings Corp., the stock price for Sears Canada has plunged to penny stock status. By mid-morning on Wednesday it had dropped to 62 cents. Shares of Sears Canada have declined 65% this year.
With little hope for survival the court filing will almost assuredly lead to a liquidation, with the business sold off in pieces.
If Sears does close its doors for good it would mark the end of a retail era.
Online shopping and an otherwise highly competitive retail market are the main factors for the demise of Sears Canada.
The Toronto-based company has lost more than $700 million in the past three years.