Douglas Campbell, president and CEO of Sears Canada (TSX:SCC), has announced his intention to resign by the end of the year.
Campbell has held the position since September 2013, and in the year he has been in the leader’s chair, the beleaguered retail chain has hit several major roadblocks.
The company started announcing layoffs and store closures in October 2013. At that time, four stores were closed, and a month later it was announced that there would be another 800 jobs cut in November 2013. Another 1,600 jobs were slashed in January 2014.
In May, Sears Canada’s majority shareholder, Sears Holdings Corporation (NASDAQ:SHLD), announced it was looking into the possibility of selling its 51% stake in the Canadian chain, which includes more than 400 locations including 176 corporate stores and 234 Hometown stores. The company also has more than 1,400 catalogue and online merchandise pick-up locations.
The latest news has prompted rumours of imminent bankruptcy, which the company vehemently denies.
Sears Canada said it will begin to search for a new CEO immediately, and Campbell will stay on until a replacement is found. He said, however, that he will not remain with the company past January 1, 2015.
As of press time, shares of Sears Canada were trading at $12.20 – a drop of 4.31%.
@EmmaHampelBIV
