Sears Canada is seeking court approval to close another batch of its stores, amid continued restructuring and no succesful bids to keep Sears operating as a whole company.
The Canadian retailer has entered into a number of lease surrender agreements and a lease amending agreement that – if approved – will result in the closure of three stores across B.C., according to a statement released Friday.
Stores impacted would include locations in Kelowna, Nanaimo and Burnaby, as well as seven others across the country. An estimated 1,200 employees will be impacted.
. @SearsCA seeks court approval to close 10 more stores, 3 in B.C.: #Kelowna, #Nanaimo & #Burnaby
— Ashley Wadhwani (@ashwadhwani) September 30, 2017
Have already closed 59.
(corrected tweet) pic.twitter.com/C5CXQUuzyJ
In June, Sears Canada announced it would close more than half of its store locations in the midst of court protection and restructuring.
Grand Forks, Kamloops, Sechelt, Creston and Abbotsford were four of the 59 locations that closed its doors.
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Within the last year, the retailer has lost more than 80 per cent of its value.
The retailer’s motion will be reviewed by the Ontario Superior Court of Justice on Oct. 4.
Sears Canada yet to receive successful bids
As the company continues to move towards restructuring, its hoping to extend the stay period from Oct. 4 to Nov. 7.
During that time, the mega-retailer said its “continuing to operate its retail stores and website at sears.ca, featuring new Fall and Holiday apparel, accessories and home fashions as it continues its restructuring efforts.”
So far, there have been no successful bids to keep Sears operating as a whole company but instead for certain sections of the business, the company said.
A plan submitted by executive chairman Brandon Stranzl was conditional on financing and other factors and has so far been unsuccessful.
“Understanding, among other components, the role a successful bid could play in saving jobs, Sears Canada advisers continue to engage with Mr. Stranzl with the goal of enhancing the value and reducing the conditionality of the proposed transaction.”
@ashwadhwani
ashley.wadhwani@bpdigital.ca
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