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Sears Canada seeks court permission for liquidation

RBR Staff Writer Published 13 October 2017

Sears Canada is seeking the Ontario Superior Court of Justice;s approval to liquidate all of its remaining stores and assets.

The company and certain of its subsidiaries will be applying to the Ontario Superior Court of Justice (Commercial List).

The stores include 74 full line stores, eight Sears Home Stores and 49 Hometown stores.

Pending approval of the court, the company expects that the liquidation sales at its retail locations will start on 19 October and it could continue for 10 to 14 weeks.

In late June, the company was granted an Initial Order and protection under the Companies' Creditors Arrangement Act (CCAA).

Later on, it had received approval from the court for the sale and investment solicitation process (SISP) to seek proposals for acquisition or investment in the Group’s business, assets and leases and to implement one or more of the proposals.

The company stated that after an exhaustive search for proposals or acquisitions and investment, it has not received any and has thus taken the decision to liquidate the business.

Sears Canada said: “The Company deeply regrets this pending outcome and the resulting loss of jobs and store closures.” 

Global News stated that as many as 12,000 jobs could be lost if Sears Canada closes down. Majority of jobs in Ontario and Quebec could be affected, where as many as 5,500 and 2,500 jobs could be lost respectively. British Columbia could lose 1200 jobs.

Image: Sears Storefront. Photo: Courtesy of Sears Brands, LLC.