If there was any doubt, it’s now official: Sears Canada will be no more.
Earlier today (October 13), the Ontario Superior Court of Justice granted approval of a motion from Sears Canada to liquidate all 130 of its remaining stores and all of its other assets.
Sears Canada employs more than 12,000 people across Canada, including 87 people at the Sears store at Lansdowne Place in Peterborough — one of two anchor tenants for the mall. The Peterborough store opened in 1954.
In the Kawarthas, Sears also operates two “hometown stores” in Bancroft and Haliburton (selling appliances, tools, and lawn and garden equipment) that will also close.
Sears Canada expects that liquidation sales at retail locations will begin no later than Thursday, October 19th and continue for 10 to 14 weeks.
VIDEO: The rise and decline of Sears Canada
The Canadian retailer has been in trouble for many years, but the end was in sight when Sears released its results for the first quarter of 2017 in June, when it reported revenue of $505.5 million, a decline of 15.2% compared to the same quarter last year. The net loss for the first quarter was $144.4 million.
“Cash and forecasted cash flows from operations are not expected to be sufficient to meet obligations coming due over the next 12 months,” the company stated in its financial results. “There are material uncertainties as to the Company’s ability to continue to satisfy its obligations and implement its business plan in the ordinary course.
“Accordingly, such conditions raise significant doubt as to the Company’s ability to continue as a going concern.”
Shortly thereafter, Sears entered bankruptcy protection in an ultimately unsuccessful attempt to restructure the company.
As for the Peterborough store adjacent to Lansdowne Place mall, its future is uncertain. Sears Canada owns the two-storey building and the surrounding parking lot, and it will presumably be placed on the market for sale as part of the liquidation process.
