Sears Canada going out of business
After struggling since June 22 to find a buyer, Sears Canada has thrown in the towel, announcing it will shut down.
By FRANCINE KOPUN Business reporter
2:45 PM, Tues., Oct. 10, 2017
About 12,000 Sears employees will be out of work over the coming weeks, after the company announced Tuesday that it is going out of business.
“Following exhaustive efforts, no viable transaction for the company to continue as a going concern was received,” according to a press release from the company issued Tuesday.
As a result, Sears Canada, which has already closed 59 stores and announced the closure of another 11, will be seeking court approval on Friday to liquidate all its remaining assets.
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“The Company deeply regrets this pending outcome and the resulting loss of jobs and store closures,” according to the brief press release.
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Executive chairman Brandon Stranzl had been working on a bid to save the company. He was not available for comment on Tuesday.
Sears Canada filed for creditor protection on June 22.
Sears Canada filed for creditor protection on June 22. (ANDREW FRANCIS WALLACE / TORONTO STAR)
According to an insider, the Stranzl deal would have saved thousands of jobs and offered relief to landlords, suppliers and consumers holding warranties. It also had financial backing.
While most of the 12,000 employees will be let go over a 10- to 14-week period as the liquidation sales wind down; most of the 800 head office jobs in Toronto will be eliminated next week.
About three-quarters of the 12,000 employees are part-time.
Employees were informed prior to the press release being issued, according to an insider.
