Published: Sat, June 24, 2017
Local | By Adrian Hale

Sears Canada says it is seeking court protection

Sears Canada says it is seeking court protection

The company released information stating that it will shutter 20 full line locations, in addition to 14 "Sears Hometown" locations, as well as 15 "Sears Home" and 10 "Sears Outlet" stores, and let go of 2,900 employees.

The Sears logo is seen on the side of a store March 24, 2005 in San Bruno, California.

Sears Holdings (SHLD), the holding company for the two iconic retail brands, warned investors that it can't promise it will stay in business. The plan was disclosed early Friday in a filing by Seritage Growth Properties, the landlord for more than 200 Sears and Kmart properties. The closings will bring the number of announced Sears closing to more than 260 this year in a series of three announcements.

The Sears at the Great Lakes Mall in Mentor is closing, a spokesman for the company confirmed. A liquidation sale will begin June 30, while the auto center will be converted to a DieHard Auto Center.

Sears is the last department store in Springfield's Eastfield Mall. The Sears Auto Center will close in late July.

RioCan Real Estate Investment Trust (TSX:REI.UN) says the restructuring of Sears Canada is expected to have a far smaller impact on its business than when Target closed up shop in Canada.

Sears acknowledged in March that there was "substantial doubt" it would survive on its own, though the company said its cost-cutting maneuvers and other retail strategies would greatly improve its chances of carrying on.

In 2015, Sears Holdings Corp. sold 235 Sears and Kmart store locations to Seritage as part of an agreement in which Sears leases the stores back from the real estate company.

Like this: