From Home Furnishing Business
Court OKs Liquidation Sales for 59 Sears Canada Stores
Sears Canada won court approval Tuesday to begin liquidation sales as early as Friday at 59 stores the bankrupt retailer is planning to close, according to multiple media reports.
The reports said the Ontario Superior Court of Justice approved the retailer’s motion to begin the liquidation sales this week and wrap them up no later than Oct. 12.
Sears Canada has been operating under protection from creditors – the equivalent of a Chapter 11 bankruptcy proceeding in the United States – since June 22. In addition to the 59 store closings, the company is eliminating about 2,900 jobs.
Click here to read a Toronto Star story about the most recent court action.
Last week, the Ontario court gave the retailer permission to begin soliciting offers from entities seeking to buy or make an investment in the company. Those bids are due Aug. 31.
Sears Canada said the court earlier approved a $450 million debtor-in-possession financing plan. It also gave the company permission to continue making payments into its pension plan and continue payments for retiree health, dental and life insurance through Sept. 30.
Sears Canada operates as a licensee of U.S.-based Sears Holdings, which owns the Sears and Kmart chains in the U.S. However, Sears Holdings owns about 11.7% of the retailer’s stock, and another 45.3% is owned by an investment fund controlled by Sears Holdings Chairman Edward Lampert.