Financially troubled Sears Canada is pulling the plug on its restructuring efforts and will liquidate all of its remaining stores and assets.
The company said it will be applying to the Ontario Superior Court of Justice for the liquidation approval. It is expected that the court will hear the motion on October 13. Pending approval of the court, it is expected that liquidation sales at retail locations would commence no earlier than October 19 and continue for 10 to 14 weeks.
Sears Canada was granted an initial bankruptcy protection order in June while the company attempted to restructure and seek out proposals for the acquisition of or investment in the Sears Canada group of businesses, assets and leases. At that time, Sears Canada also closed 20 full-line locations as well as 15 Sears Home, 10 Sears Outlet and 14 Sears Hometown stores.
However, while Sears Canada received and implemented some transactions for various lines of business, the company stated that, “Following exhaustive efforts, no viable transaction for the company to continue as a going concern was received. 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 deeply regrets this pending outcome and the resulting loss of jobs and store closures.”
Sears Canada operates about 140 corporate stores including full-line, Sears Home and Outlet stores and 71 Hometown stores.