Sears Canada has received court approval to proceed with a liquidation that will result in a wind-down of its business and the closure of its remaining stores.
In an announcement yesterday (16 October), the department store retailer said it has received approval from the Ontario Superior Court of Justice to liquidate all of its remaining stores and assets.
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The retailer, which told just-style last week it has 12,000 employees working for the company, will begin liquidation sales on Thursday (19 October).
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 Court has also extended the stay period to 22 January 2018.
In a statement last week, Sears Canada said 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.
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By GlobalDataSears Canada seeks liquidation approval
“The company deeply regrets this pending outcome and the resulting loss of jobs and store closures,” it added.
Meanwhile, executive chairman Brandon Stranzl has resigned from the company’s board with a statement by Sears Canada explaining that “in light of the liquidation, his services are no longer required”.
The contractual joint venture of Gordon Brothers Canada ULC, Hilco Global (through its Canadian division, Merchant Retail Solution ULC), Tiger Capital Group, LLC and Great American Group , LLC (through its Canadian division GA Retail Canada ULC) has been retained by Sears Canada to operate the liquidation sales at all of its full-line and Sears Home locations.
