Sears Canada is going out of business

Gladys Abbott
October 11, 2017

Accordingly, Sears Canada, with the recommendation of its advisors 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 had been in negotiations with Executive Chairman Brandon Stranzl, who stepped away from day-to-day operations to come up with a proposal to keep the company afloat.

On Tuesday, the retailer said in a statement that "following exhaustive efforts, no viable transaction" was made. About 75% of those employees are part-time workers, Sears said.

If it is approved, liquidation will begin around October 19, lasting 10 to 14 weeks.

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

However, Susan Ursel, a lawyer representing current and former Sears Canada employees, says a liquidation would be "extremely detrimental".

It's been a tough few months for once-iconic department store brand Sears, and it looks like news isn't getting any better for the once beloved retailer.

More news: United Nations sanctions committee bans 4 ships from entering ports

Napper said Sears occupies about 160,000 square feet in Midtown Plaza, representing between 15 and 18 per cent of the mall's total space.

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.

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

Prior to the bankruptcy filing, Sears Canada had been in the midst of a turnaround, which included a new off-price model and a revamped private label assortment.

"It's a sad day for us in retail, in many ways", he said.

Other reports by LeisureTravelAid

Discuss This Article