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Sears Canada secures approval to begin liquidation at remaining stores
By Caroline Salls
Pittsburgh, Oct. 16 – Sears Canada Inc. received approval from the Ontario Superior Court of Justice to proceed with a liquidation of all of its inventory and furniture, fixtures and equipment located at its remaining stores, according to a news release.
The liquidation sales are expected to begin on Thursday.
The contractual joint venture of Gordon Brothers Canada ULC, Hilco Global, Tiger Capital Group, LLC and Great American Group , LLC has been retained to operate the liquidation sales at all of Sears Canada’s full-line and Sears Home locations.
As previously reported, Sears Canada conducted a comprehensive sale and investment solicitation process to seek out proposals for the acquisition of, or investment in, the group’s business, assets and/or leases.
The company said it received court approval of going-concern transactions for various lines of business, but no viable transaction for the company to continue as a going concern had been received as of Monday.
In addition to approving the liquidation sales, the court also extended Sears Canada’s Companies’ Creditors Arrangement Act stay period to Jan. 22.
The company said it embarked on a reinvention plan over the last 18 months that had begun to gain traction with customers. However, Sears Canada said it does not have the financial resources to provide it with the time necessary to complete its reinvention.
Sears said it is continuing to seek a purchaser for the Sears Canada Product Repair Services business, but the terms upon which an acquirer of that business would provide services to Sears customers are not known at this time.
According to the release, Brandon G. Stranzl has resigned from the company’s board of directors. In light of the liquidation, Sears Canada said his services are no longer required as executive chairman.
Sears Canada is a Toronto-based retailer.
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