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Sears Canada Seeks Court Approval to Liquidate All Remaining Stores

Sears Canada Seeks Court Approval to Liquidate All Remaining Stores

By Ambia Staley

The Sears Canada roller-coaster ride may be nearing its end, as the company announced earlier today that it will be applying for court approval to liquidate all of its remaining stores and assets.

"Sears Canada, with the recommendation of its advisers and approval of the Monitor, FTI Consulting Inc., is seeking an order to commence a liquidation that would result in a wind-down of its business following court approval," the company said in a press release. "The Company deeply regrets this pending outcome and the resulting loss of jobs and store closures."

Sears entered creditor protection on June 22 in an effort to restructure and turn around years of plummeting profits. Shortly after the company was granted creditor protection, they announced closure of 59 stores nation-wide, along with 2,900 job cuts. As recently as last week, the company added another 11 stores and 1,200 jobs to the chopping block.

The Ontario Superior Court of Justice is expected to hear Sears Canada's motion as early as October 13. Once approval is granted, the company expects to begin liquidation sales at all remaining Sears locations no earlier than October 19, with sales lasting between 10 and 14 weeks.

39 Comments

    • Another one bites amazons dust.
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    • It's too bad, they had some good deals on appliances and furniture. I just got a new mattress from them delivered on the weekend for a very good price
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    • So... all those retention bonuses for the execs.... do they still get it after deciding to throw in the towel anyways?
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    • Very sad. Was always a fan of the quality of good they carried. Hopefully those who will lose their jobs can recover from this. :(
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    • iamskyhigh wrote:
      Oct 10th, 2017 1:01 pm
      Another one bites amazons dust.
      I don't think it was Amazon that took them out. I think it was not being able to keep up with trends and customer preferences. I don't even remember the last time I bought clothes at Sears. Lack of name brands/poor quality. IF i was to purchase clothing at a department store, I would go to The Bay. Sears was so depressing to go into, and the only time i went in there was to look at appliances.
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    • Too bad, I rather liked Sears for their clothing, and the occasional price error online.

      Can anybody comment on the value or quality of deals available thus far into their liquidations? There's only one Sears here in town which wasn't slated to close until this news.
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  • rb
    • What are all those Malls going to do with the empty space , some still have Old Target stores yet to be leased ?
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    • rb wrote:
      Oct 10th, 2017 1:31 pm
      What are all those Malls going to do with the empty space , some still have Old Target stores yet to be leased ?
      Make the space more attractive, price-wise?

      Also could do leisurely stuff to attract more health/community conscious. Because why not?
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    • chimaican wrote:
      Oct 10th, 2017 1:20 pm
      So... all those retention bonuses for the execs.... do they still get it after deciding to throw in the towel anyways?
      Of course, still need them as Business winds down.
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  • rb
    • AndySixx wrote:
      Oct 10th, 2017 1:32 pm
      Make the space more attractive, price-wise?
      You can only go so low in pricing , if they were sole anchor tenants and no one else is left to take over the space , the mall simply can't generate a return from the remaining tenants
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    • kenvin100 wrote:
      Oct 10th, 2017 1:25 pm
      Very sad. Was always a fan of the quality of good they carried. Hopefully those who will lose their jobs can recover from this. :(
      Totally agree. I really liked the quality of Sears. I had lots of clothing that lasted for many years. And they always fit me well.
      Kids clothing was also just as good. Well priced and better quality than the walmart stuff.
      I truly am disappointed.

      Less competition, less choices for Canadian consumers.
      Very sorry for all the folks working at Sears.
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    • rb wrote:
      Oct 10th, 2017 1:31 pm
      What are all those Malls going to do with the empty space , some still have Old Target stores yet to be leased ?
      A lot of the Targets were in B-malls. Sears tends to be in higher A-type malls. They'll eventually find a new anchor or they'll just divide up the space into smaller units.
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    • Not surprised. But unfortunate.
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    • rb wrote:
      Oct 10th, 2017 1:34 pm
      You can only go so low in pricing , if they were sole anchor tenants and no one else is left to take over the space , the mall simply can't generate a return from the remaining tenants
      Those in mall operations should've seen this coming as we all have for months. If they didn't have a Plan B, especially if they had only one anchor, they should join those at Sears and take their walking papers.

      I'm personally thinking positive and believing there's some creativity.
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    • rb wrote:
      Oct 10th, 2017 1:34 pm
      You can only go so low in pricing , if they were sole anchor tenants and no one else is left to take over the space , the mall simply can't generate a return from the remaining tenants
      They haven't been an anchor tenant by definition for at least 10 years. Their rents reflected that AFAIK.
    • Report Post
    • Sears Canada is officially closing all remaining stores in Canada. It's looking for court approval to start liquidating the remaining stores this Friday.

      Gonna be a lot of hot deals
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    • Its a sad day in retail because another choice in shopping has been removed. Sears served the market between the low prices of Walmart and the high prices of the Bay.. It is bad when there less competition. With Sears gone, there are no department stores left in Canada besides Walmart. But Walmart has poor quality products compared to Sears.
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    • The last time I shopped at Sears was I can't even remember. Over a decade? The only reason I ever stepped into a Sears was to get through it so I could get into the mall. I won't miss them that much.
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    • There goes all the warranty and parts support for Craftsman tools.
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  • 82
    • how will this affects pending order at sears.ca?
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    • Not a hot deal. Like when Aeropostale closed, their items are more expensive during the liquidation sale. Crowded, messy, low stock, final sale.

      Sears had 40% off sale every weekend. However during liquidation people completely ignore this fact. All they see is closing down sale and think it is a massive sale. Usually starts at 15 to 30% off. By the time it hits 50% off you are left with scraps.
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    • But what happens to all online orders before the annoucements?
      They will fulfill them or give refunds?

      When is the stores going to start offering come in and get 70% off everything sales?

      There will be line-ups out to the highways at each location.
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    • It's quite sad, but that's what happens when you don't change the store to go along with modern times. It felt like their stores were never modernized over the last 20 years.

      Their products were good, especially for furniture and decor, and their latest attempt to survive via Sears "the Cut" branding was what they should've done 10 years ago.

      Suddenly all the modern decor, bedding and clothing went on their website and shelves at a good price.. albeit a bit too late.

      I think I bought more from them in the last year vs the last 10 years due to this change.

      My parents will be especially sad. I think they remembered when Eaton's went out.

      I wonder when London Drugs will go.. love them but they haven't modernized their stores in like 20 years as well, compared to the likes of SDM and Rexall.
    • Report Post
    • in before the merge.
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    • TheRock2012 wrote:
      Oct 10th, 2017 2:11 pm
      But what happens to all online orders before the annoucements?
      They will fulfill them or give refunds?

      When is the stores going to start offering come in and get 70% off everything sales?

      There will be line-ups out to the highways at each location.
      newby? Sales will start at 20% off.
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    • But what happens to all online orders before the annoucements?
      They will fulfill them or give refunds?

      When is the stores going to start offering come in and get 70% off everything sales?

      There will be line-ups out to the highways at each location.
      bkushner wrote:
      Oct 10th, 2017 2:12 pm
      in before the merge.
      Merge into what? Targets are gone and so are Zellers. :rolleyes:
    • Report Post
    • LonesomeDove wrote:
      Oct 10th, 2017 2:06 pm
      Its a sad day in retail because another choice in shopping has been removed. Sears served the market between the low prices of Walmart and the high prices of the Bay.. It is bad when there less competition. With Sears gone, there are no department stores left in Canada besides Walmart. But Walmart has poor quality products compared to Sears.
      Hudson's Bay and RCSS beg to differ. for the most part both offer higher quality products than Walmart.
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    • kenvin100 wrote:
      Oct 10th, 2017 1:25 pm
      Very sad. Was always a fan of the quality of good they carried. Hopefully those who will lose their jobs can recover from this. :(
      I really love their particular Turkish cotton Sears brand towel. No towels elsewhere can beat that quality. Not one in The Bay last I went.
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    • jzmtl wrote:
      Oct 10th, 2017 2:08 pm
      There goes all the warranty and parts support for Craftsman tools.
      Stanley Black & Decker purchased the Craftsman tool brand, so I think they should be status quo when it comes to warranty...
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    • TheRock2012 wrote:
      Oct 10th, 2017 2:13 pm
      Merge into what? Targets are gone and so are Zellers. :rolleyes:
      Thread merge, I think.
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    • WTF, so what would happen to my appliance protection plan, and so called "if the protection is not used at the end of the term, one could redeem gift card"?
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    • When Sears In Cambridge closed, everything was at 50-60% off.
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    • gowifi wrote:
      Oct 10th, 2017 2:21 pm
      WTF, so what would happen to my appliance protection plan, and so called "if the protection is not used at the end of the term, one could redeem gift card"?
      This.
      what can one expect
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    • It’s very sad for the employees. I do think people should be worried that the current model rewards stores that are basically distributors of Chinese made goods. I suppose that’s better than goods made by robots but someone will have to deal with this skewed way of distributing wealth. Might be more efficient but it is a road to disaster.
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    • hmmm...the sears at Erin Mills Town Center (Mississauga) is under going renovations for a new and improved Sears....too bad

      wonder who is going to scoop up the vacant real estate
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    • 10 week clearout. 20 % week 1 , 30-40 % off week 3, 40-50% off week 5 etc etc . Why start at 50%? I doubt it will start at 50% and I have seen many chains go under.
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