Sears Canada, some units seek court OK to liquidate stores and assets

By Caroline Salls

Pittsburgh, Oct. 10 – Sears Canada Inc. and some of its subsidiaries will apply to the Ontario Superior Court of Justice for approval to liquidate all of its remaining stores and assets, according to a news release.

The court is expected to hear the motion on Friday.

Pending court approval, Sears Canada said it expects that liquidation sales at retail locations would begin no earlier than October 19 and continue for 10 to 14 weeks.

As previously reported, Sears Canada was granted an initial order and protection under the Companies’ Creditors Arrangement Act on June 22.

The company subsequently received approval of a sale and investment solicitation process 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 said it received and implemented going concern transactions for various lines of business, but no viable transaction for the company to continue as a going concern was received.

As a result, the company is seeking an order to begin a liquidation that would result in a winddown of its business.

Sears Canada is a Toronto-based retailer.

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