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Sears Canada Going Out of Business

After Failing To Find Buyer, Retailer Closing more than 160 Locations
October 10, 2017
Sears Canada Inc. will be applying to the Ontario Superior Court of Justice for approval to liquidate all of its remaining stores and assets.

The court is expected to hear the motion later this week. Pending approval of the court, it is expected that liquidation sales at retail locations would commence next week and continue for 10 to 14 weeks.

Sears Canada filed for protection under Canada's Companies' Creditors Arrangement Act in June. The court gave Sears Canada permission to seek a sale or merger of the company.

Brandon Stranzl, the executive chairman of Sears Canada, had been trying to put together a takeover bid. However, following exhaustive efforts, no viable transaction for the company to continue as a going concern was approved by a Sept. 25 deadline.

Sears Canada has been a part of the Canadian retail landscape since the early 1950s and is one of Canada’s largest retailers, with a presence in all 10 provinces and 17,000 employees.

As of its filing, Sears Canada’s sales, distribution and logistics network included:

  • 161 owned and leased stores, distribution centers and warehouses, with the largest concentration of stores in Ontario;
  • A network of 62 “Sears Hometown” stores;
  • 16 Corbeil Électrique franchisees; and
  • 514 independently operated direct-purchase pick-up counters and 191 counters imbedded in other Sears Canada locations.

    The liquidation would not affect Corbeil Électrique, which is expected to be sold to Am-Cam Électroménagers Inc. and would continue to operate at its existing locations.

    Also not included would be Sears Canada's Garden City location in Winnipeg, which was under agreement to be sold.

    Sears Canada’s major shareholders are Fairholme Capital Management, ESL Investments Inc. and Edward S. Lambert. ESL and Lambert own their shares both directly and through Sears Holdings Corp. a U.S. public company that operates Sears stores in the United States.

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