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From Home Furnishing Business

Sears Canada to Close 59 Stores, Cut 2,900 Jobs

Sears Canada LogoSears Canada (TXS: SCC; NASDAQ: SRSC), which filed for bankruptcy earlier this week, said it will close 20 of its 90 full-line department stores and dozens of other smaller-format stores as part of its restructuring.

The retailer said also said it will eliminate about 2,900 jobs in its retail stores and corporate office in Toronto.

In addition to the full-line stores, Sears Canada said it will shutter 15 Sears Home stores, 14 Sears Hometown locations, and 10 Sears Outlet stores. The retailer said a timetable for the closings hasn’t been finalized.

“The continued liquidity pressures facing the company as well as legacy components of its business are preventing it from making further progress in its brand reinvention efforts and from restructuring its legacy assets and businesses, which is why it sought creditor protection under the CCAA (Companies Creditors Arrangement Act),” the company said in a statement announcing the closings and job cuts.

The CCAA process is the equivalent of a Chapter 11 bankruptcy filing in the United States.

The retailer said it had obtained C$450 million in debtor-in-possession financing from a lending group led by Wells Fargo.

Sears Canada operates as a licensee of U.S.-based Sears Holdings, although Sears Holdings owns about 11.7% of Sears Canada stock. Another 45.3% of the stock is owned by an investment fund controlled by Sears Holdings Chairman Edward Lampert.

For a complete list of store closings, click here.

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