advertisement

Sears Canada to file for liquidation after getting no viable bid

Sears Canada Inc. will seek court approval to liquidate its remaining stores on Friday with the loss of about 12,000 jobs after it failed to receive a viable bid for the company.

The Toronto-based retailer expects to begin liquidation sales on Oct. 19 at the earliest, according to a statement Tuesday. Sears Canada said it received bids for various lines of business, but nothing viable was received for the company to continue as a going concern.

“The company deeply regrets this pending outcome and the resulting loss of jobs and store closures,” according to the statement. Executive chairman Brandon Stranzl, backed by Blackstone Group LP, had launched a bid to buy the company's assets and keep the company running. Stranzl declined to comment.

Sears Canada is the latest victim of department-store decline that's swept North America as shoppers gravitate online. The company filed for creditor protection in June with liabilities of C$1.1 billion ($880 million) and had been gradually closing its 225 stores. About 150 remain across the country.

Article Comments
Guidelines: Keep it civil and on topic; no profanity, vulgarity, slurs or personal attacks. People who harass others or joke about tragedies will be blocked. If a comment violates these standards or our terms of service, click the "flag" link in the lower-right corner of the comment box. To find our more, read our FAQ.