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 anticipated that liquidation sales at retail areas would start next week and continue for 10 to 14 weeks.
Sears Canada declared security under Canada’s Business’ Creditors Arrangement Act in June. The court gave Sears Canada consent to look for a sale or merger of the company.
Brandon Stranzl, the executive chairman of Sears Canada, had been aiming to put together a takeover bid. However, following exhaustive efforts, no feasible transaction for the company to continue as a going concern was authorized by a Sept. 25 due date.
Sears Canada has belonged of the Canadian retail landscape given that the early 1950s and is among Canada’s biggest retailers, with an existence in all 10 provinces and 17,000 staff members.
As of its filing, Sears Canada’s sales, distribution and logistics network included:161 owned and rented shops, distribution centers and storage facilities, with the biggest concentration of shops in Ontario;
A network of 62 “Sears Home town” stores;
16 Corbeil Électrique franchisees; and
514 individually operated direct-purchase pick-up counters and 191 counters inserted in other Sears Canada locations.
The liquidation would not impact Corbeil Électrique, which is anticipated to be sold to Am-Cam Électroménagers Inc. and would continue to operate at its existing areas.
Also not consisted of would be Sears Canada’s Garden City place in Winnipeg, which was under arrangement to be offered.
Sears Canada’s significant shareholders are Fairholme Capital Management, ESL Investments Inc. and Edward S. Lambert. ESL and Lambert own their shares both straight and through Sears Holdings Corp. a U.S. public business that runs Sears stores in the United States.