published on June 22, 2017 - 10:47 AM
Written by Associated Press

(AP) — Sears Canada Inc. said Thursday it plans to close 59 locations across Canada and cut approximately 2,900 jobs under a court-supervised restructuring.

The struggling retailer, a separate, publicly traded company that was spun off from Sears Holdings in 2012, said it will close 20 full-line locations, plus 15 Sears Home stores, 10 Sears Outlet stores and 14 Sears Hometown locations.

The announcement came after the company was granted temporary court protection from creditors under Ontario’s Companies’ Creditors Arrangement Act this morning.

Under the plan, Sears Canada has been authorized by the Ontario Superior Court of Justice to obtain up to $450 million Canadian (US$340 million) in financing to maintain operations throughout the restructuring.

The struggling retailer has piled up losses over several years and seen its stock dive, losing more than 80 percent of its value in the last year, despite efforts to reinvent itself at a time.

“The brand reinvention work Sears Canada has begun requires a long-term effort,” Sears Canada said in a statement Thursday.

“But the continued liquidity pressures facing the company as well as legacy components of its business are preventing it from making further progress.”

Headquartered in Toronto, Sears Canada had 94 department stores, 23 Sears Home stores and 10 outlets prior to the CCAA restructuring.

It said it hopes to exit court protection as soon as possible in 2017.


e-Newsletter Signup

Our weekly poll

Is your company participating in the federal payroll tax deferral program?

Loading ... Loading ...

Central Valley Biz Blogs

Popup
shares

3/5

Article views

remaining

Sign up icon

To continue website access to

TheBusinessJournal.com

please create a FREE account OR login here.

1/5

Article views

remaining

SKIP THE POP-UPS
For only $59 for one 1-year you will receive the Print edition along with EVERYTHING The Business Journal has to offer digitally, PLUS you will have unlimited 24- hour a day access to view articles at

TheBusinessJournal.com

Use Promo Code

*New Subscribers Only

Digital and Print

XX Days Remaining

until you can view 5 more free articles

Sign up icon

Want access? Subscribe now & save $20 OFF.

Use Promo Code

WEBSUB20

* NEW SUBSCRIBERS ONLY