Another one bites the dust: beleaguered retail chain Sears Canada Inc. (TSX:SCC) has lost yet another CEO – the fourth in as many years.
Ronald Boire is leaving his post as president and CEO at the end of summer “to pursue an opportunity in the United States,” Sears Canada said in a July 2 release.
The company said it is in search mode for someone to fill Boire’s shoes. Until that time, Brandon Stranzl, company board chairman, will take the helm. Stranzl has been named executive chairman.
“I am enthusiastic about the opportunity to play an expanded role within our organization, and I am committed to working closely with all our Sears associates and business partners to make progress on our goals to delight our customers and return Sears Canada to profitability,” Stranzl said.
“We are grateful for Ron’s support as we search for and welcome a new CEO. In the meantime, the management team and I are fully engaged in executing the current strategy, designed to improve our retail operations so we can best serve Canadian communities from coast to coast.”
Boire stepped in as interim CEO in October 2014, one month after his predecessor Douglas Campbell announced his resignation after one year on the job. Boire’s role became official in January 2015.
He has not had an easy ride in his short time heading up the company. Sears Canada lost $339 million, or $3.32 per share, in 2014, compared with profit of $447 million ($4.38 per share) the year before. In March 2015, the company sold – and then leased back – three locations for $140 million. This included the Metrotown and Chilliwack’s Cottonwood Mall locations.
The company’s troubles came to light in 2013, when it announced it was closing five stores across Canada, including Richmond Centre, and laying off 1,000 workers. A month later, it laid off another 800 staff members and in January 2014, a further 1,600 layoffs were announced.
In October 2014, Sears Holdings – the company’s American parent – said it would be selling off most of its stake in the chain.
Since that time, Sears Canada has been trying to revitalize its offerings, with announcements in April 2015 that it would be partnering with both Cherokee and Wayne Gretzky in the development of new product lines.
As of press time, shares of Sears Canada were trading at $7.54, representing a dip of 0.26%.
