Following its efforts to turnaround the company, Sears Canada has announced it is seeking court approval to commence a liquidation that would result in a wind-down of its business and the loss of 12,000 jobs.
In an announcement yesterday (10 October), the department store retailer said the group 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 on Friday (13 October).
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The retailer said it would begin liquidation sales from no earlier than 19 October and expects them to continue for ten to 14 weeks.
Sears Canada has been operating under creditor protection since 22 June. It subsequently received the Court’s approval of a sale and investment solicitation process (SISP) to seek out proposals for the acquisition of, or investment in, the group’s business or assets a month later.
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The retailer said in a statement it received and implemented going concern transactions for various lines of business, but “following exhaustive efforts”, no viable transaction for the company to continue as a going concern was received.
“The company deeply regrets this pending outcome and the resulting loss of jobs and store closures,” it added.
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By GlobalDataSears Canada told just-style it currently has 12,000 employees working for at the company.
