Sears Canada will ask for court approval on Oct. 13 to begin liquidation of its stores and assets, throwing about 12,000 employees out of work, according to media reports Tuesday, APA reports quoting AA.
The company, “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,” Sears Canada said in a statement. A monitor keeps an eye on business proceedings and provides advice.
The move comes after several attempts to sell the chain were fruitless, including a takeover bid by Sears executive chairman Brandon Stranzl to keep the retailer in operation.
“Following exhaustive efforts, no viable transaction for the company to continue as a going concern was received,” the statement said.
In June, Sears Canada – a separate operation from Sears in the U.S. – sought court protection from its creditors and in a bid to reinvent itself, shuttered 35 home and department stores, along with small-market home-town locations and discount outlets. It also eliminated 2,900 employees.
Last week, the court approved the closing of another 11 stores. But the monitor, FTI Consulting, warned that Sears was running out of money.
The approximately 130 remaining stores will be closed once assets are liquidated.
The company said it will start liquidation sales later this month and expects it to take 10-14 weeks.
The group of lenders who had financed Sears to keep the stores in operation during its creditor protection pushed for liquidation during the Christmas buying season to obtain maximum sales and value.
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