A week after the retailer said it had ‘significant doubt’ about its future, Sears Canada (TSX:SCC) has announced it is seeking creditor protection, closing 59 locations and laying off 2,900 employees.
The retailer has been granted an initial order from the Ontario Superior Court of Justice under the Companies’ Creditors Arrangement Act. It now has 30 days to restructure and has obtained $450 million in debtor-in-possession financing.
Trading of the company’s shares, which had lost more than 56% of their value in the last month, has ceased. As of closing yesterday, shares were trading at $0.62 per share – down more than 84% compared with a year ago ($3.90).
The company said it is closing 20 full-line stores, 15 Sears Home locations, 10 Sears Outlets and 14 Sears Hometown stores. Five locations in B.C. will be affected:
- The Kamloops Aberdeen Mall full-line store;
- the Sears Outlet in Abbotsford; and
- the Hometown locations in Creston, Sechelt and Grand Forks.
A full list is included below.
Sears Canada isn’t going down without a fight; the company said it still plans to go ahead with its “Sears 2.0” reinvention. Four locations last year were converted to the new concept, with different layouts and inventory compared with its traditional stores, and 10 more stores are planned by the end of this year.
Washington, DC-based FTI Consulting Canada Inc. has been appointed as monitor in the creditor arrangement proceedings.
A full list of all Sears stores to be closed:
| Sears Full-Line: | Hometown: | Outlet: | Sears Home: |
| Medicine Hat, AB | Cold Lake, AB | Abbotsford Retail, BC | Calgary, AB |
| Grande Prairie, AB | St. Albert, AB | Winnipeg Garden City, MB | Edmonton Skyview, AB |
| Lloydminster, AB | Okotoks, AB | Halifax Outlet, NS | Ancaster, ON |
| Red Deer Relocation, AB | Spruce Grove, AB | Cornwall, ON | Woodbridge, ON |
| Kamloops Aberdeen Mall, BC | Ft. McMurray, AB | Chatham, ON | London, ON |
| Bathurst, NB | Leduc, AB | Cambridge, ON | Scarborough, ON |
| Saint John, NB | Sherwood Park, AB | Timmins, ON | Kingston, ON |
| Corner Brook, NL | Creston, BC | St. Eustache, QC | Ottawa East, ON |
| Truro Mall, NS | Sechelt, BC | Montreal Place Vertu, QC | Sudbury, ON |
| Dartmouth, NS | Grand Forks, BC | Sorel, QC | Windsor, ON |
| Brockville, ON | Orangeville, ON | Orillia, ON | |
| Sault Ste. Marie, ON | Rimouski, QC | St. Bruno, QC | |
| Hull, QC | Rouyn-Noranda, QC | Laval, QC | |
| Chicoutimi, QC | Melville, SK | Quebec City, QC | |
| St. Georges de Beauce, QC | Ste. Foy, QC | ||
| Alma, QC | |||
| Drummondville, QC | |||
| Regina, SK | |||
| Moose Jaw, SK | |||
| Prince Albert, SK |
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