Update: Sears Canada was authorized to obtain financing of C$450 million. The bankrupt company said it would close 20 full-line locations plus 15 Sears Home stores, 10 Sears Outlets and 14 Sears Hometown locations; it would also cut 2,900 positions across retail network, corporate head office in Toronto.
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It’s official – the US ‘retail apocalypse’ has moved north as Sears Canada (and some of its subsidiaries) have applied to Ontario Superior Court of Justice for protection under the companies’ Creditors Arrangement Act (CCAA), in order to continue to restructure its business.
Sales at Sears Canada have fallen sharply since it was spun off from its equally-troubled US-based parent in 2012; the slump coincides with a broader shift in consumer preferences away from brick and mortar retailers and toward e-commerce.
This shouldn;t come as a surprise to anyone, in an admission last week, Sears Canada said it has ‘significant doubt’ that it can continue to operate for much longer. Meanwhile, its American counterpart announced that it would lay off 400 employees as part of an initiative to produce $1.25 billion in savings after admitting back in March that the future of its business is also in serious jeopardy, as Fortune reported.
This post was published at Zero Hedge on Jun 22, 2017.
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