Sears Canada Inc. plans to liquidate all its remaining stores, the department store chain announced Oct. 10, following a last-ditch attempt by Executive Director Brandon Stranzl to save the company.
The liquidation would lead to the closure of 130 stores and cause the loss of 12,000 jobs, Reuters reported Oct. 10.
"Following exhaustive efforts, no viable transaction for the company to continue as a going concern was received," Sears Canada said in a press release.
Sears Canada, which was spun off from Sears Holdings Corp. in 2012, received bankruptcy protection under the Companies Creditors Arrangement Act, a Canadian statute similar to Chapter 11 bankruptcy protection in the United States, in June. Since then, the company has gone through a series of efforts aimed at keeping the company afloat. Most recently, Stranzl stepped down from his daily duties at Sears Canada in August to prepare a bid to save the company from liquidation.
Edward Lampert, Sears Holdings' CEO, directly owns 22.6 million, or 22.24%, of Sears Canada shares. Lampert's hedge fund, ESL Investments, owns 23.5 million shares, or 23.07% of outstanding shares, according to S&P Capital IQ.
The Ontario Superior Court of Justice will hear Sears Canada's motion Oct. 13. If the motion is approved, the liquidation sales could start as early as Oct. 19 and continue for 10 to 14 weeks, according to the company.
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