1. Skip to navigation
  2. Skip to content
  3. Skip to sidebar

Sears Canada to seek court approval to liquidate all remaining stores

CityNews | posted Wednesday, Oct 11th, 2017

AppleMark

Sears Canada Inc. is applying for court approval to liquidate all of its remaining stores and assets after failing to find a buyer that would allow it to continue as a business.

The embattled retailer has been operating under the Companies’ Creditors Arrangement Act since June.

The court overseeing Sears Canada’s operations is expected to hear a motion Friday seeking approval for the liquidation and wind down of the business.

Sears Canada said in a statement Tuesday it “deeply regrets this pending outcome and the resulting loss of jobs and store closures.”

The company wants to start the liquidation sales no later than Oct. 19 and expects them to continue for 10 to 14 weeks.

Last Tuesday, Sears received a revised bid from a buyer group led by its executive chairman Brandon Stranzl to buy the business as a going concern.

However, a lawyer for Sears Canada’s court-appointed monitor told the court last week said it would consider it but the company was running out of money and time.

Litigators for a group of lenders who have provided debtor-in-possession financing to Sears Canada to keep it afloat pushed for a liquidation agreement to be entered into by Oct. 7 at the latest. The lenders pushed for approval no later than Oct. 13, in order to liquidate before the crucial holiday season and maximize value.


Comments

  • No comments have been left yet, get the conversation started!

Leave a Comment Below

Sign in to comment.

All fields are required.

Want to embed media into your comment? Just paste in a URL in a separate paragraph to the page where you would normally view the media (like on YouTube) and it will automatically be embedded into your comment.