• Clint Engel

Sears Canada calls it quits

The bankrupt retailer plans liquidations at 166 remaining stores

TORONTO — Long struggling Sears Canada has asked a court for approval to liquidate all remaining stores after failing to find a buyer.

The retailer announced Tuesday it will apply to the Ontario Superior Court of Justice for approval to liquidate all remaining stores and assets. If approved the sales would being Oct. 19 or later and run for 10 to 14 weeks.

In June, the retailer filed for protection from creditors under the Companies’ Creditors Arrangement Act — Canada’s version of Chapter 11 bankruptcy protection. The following month, it began liquidation of 54 locations — 20 full-line stores, 15 Sears Home, 10 outlets, and nine Hometown locations — under a plan already approved by the court.

According to local reports, Sears Canada has 166 remaining stores, and 12,000 people will lose jobs following the shuttering.

“Sears Canada received and implemented going concern transactions for various lines of business, but following exhaustive efforts, no viable transaction for the company to continue as a going concern was received,” the retailer said in a statement.

Last month, The Wall Street Journal, citing sources “familiar with the matter,” reported the retailer was negotiating a private equity deal valued at $533 million and led by the Sears Canada Executive Chairman Brandon Stranzl, who had stepped away from day-to-day operations.

The retailer declined to comment on the report, and told Furniture Today. The bid deadline for a “sales and investment solicitation process,” expired Aug. 31, and all bids were under review by banks, lenders, a court-appointed monitor and the board, the retailer had said.

Clint EngelClint Engel | Senior Retail Editor, Furniture Today
cengel@furnituretoday.com

Please feel free to email or call me with all of your retail news and tips, including expansion news, successful merchandising and marketing strategies and anything else you would like to see covered by Furniture/Today.  Contact me directly at cengel@furnituretoday.com or 336-605-1129.

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