Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Friday June 23, 2017
Sears Canada to close 59 stores, lay off 2,900 in restructuring
Sears Canada plans to close 59 stores and eliminate 2,900 jobs across the country as part of a court-supervised restructuring process.
Shares in Sears Canada were halted Thursday morning after the retailer applied for and was granted protection from its creditors under the Companies’ Creditors Arrangement Act — the law that covers insolvency proceedings.
The move gives the retailer 30 days to restructure itself, which includes $450 million in debtor-in-possession financing to fund the company while it restructures, a process that will include closing dozens of locations and laying off thousands of workers.
The chain will axe 20 full Sears stores, 15 Sears Home Stores, all 10 outlet stores and 14 Sears Hometown stores — roughly one-third of its current retail footprint.
All other Sears locations will remain open, the chain said, and the company “plans to continue to operate a large number of stores, continue to maintain significant employment, and to service its customers across Canada,” Sears said in a court filing.
About 500 office positions at the company were to be eliminated immediately. The remainder of the job losses will come as Sears closes stores. As of May 30, the company employed approximately 17,000 people, with 10,500 in part-time positions and the rest working full-time.
Trading in the shares was halted before the Toronto Stock Exchange opened on Thursday, pending news. Minutes later, Sears Canada announced its plan in a press release. (Source: CBC)