Sears Canada Inc. (“Sears Canada”, or the “Company”) today announced that it and certain of its subsidiaries (the “Sears Canada Group”) will be applying to the Ontario Superior Court of Justice (Commercial List) (the “Court”) for approval to liquidate all of its remaining stores and assets. It is expected the Court will hear the motion on October 13, 2017. Pending approval of the Court, it is expected that liquidation sales at retail locations would commence no earlier than October 19 and continue for 10 to 14 weeks. Further details regarding the liquidation will be communicated in due course.
Sears Canada was granted an Initial Order and protection under the Companies’ Creditors Arrangement Act (“CCAA”) on June 22, 2017. It subsequently received the Court’s approval of a sale and investment solicitation process (SISP) to seek out proposals for the acquisition of, or investment in, the Sears Canada Group’s business, assets and/or leases, and to implement one or a combination of proposals.
Sears Canada received and implemented going concern transactions for various lines of business, but following exhaustive efforts, no viable transaction for the Company to continue as a going concern was received. Accordingly, Sears Canada, with the recommendation of its advisors 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 deeply regrets this pending outcome and the resulting loss of jobs and store closures.
Source: Media Release