Sears Canada is looking at court approval to liquidate all of its remaining stores and assets.
According to the company, it is applying to the Ontario Superior Court of Justice and it is expected the Court will hear the motion later this week on October 13.
Once approved, it is expected that liquidation sales at retail locations would commence no earlier than October 19 and continue for 10 to 14 weeks, Sears said in a statement.
In June, Sears Canada announced it would be close 59 of its stores and lay off 2,900 workers as part of its restructuring plan. The company was granted an Initial Order and protection under the Companies’ Creditors Arrangement Act (“CCAA”) on June 22.
The decision is a result of company concerns around the inability to overcome the challenging retail marketplace and continue with its reinvention plan, which began last year.
Its net loss for the first quarter was $144.4 million, more than double during the same period last year. As well, revenues have dropped by approximately $90 million to $505.5 million, representing a decline of 15.2%.
According to Tuesday’s company statement, “Sears Canada received and implemented going concern transactions for various lines of business, but following exhaustive efforts, no viable transaction for the Company to continue as a going concern was received.”
And accordingly, it is seeking an order to commence a liquidation that would result in a wind-down of its business following Court approval. The company said it “deeply regrets this pending outcome and the resulting loss of jobs and store closures.”