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Court OK's Sears Canada liquidation, all stores to close

Court OK's Sears Canada liquidation, all stores to close
From CBC - October 13, 2017

An Ontario Superior Court judge has approved a request by Sears Canada to liquidate all of its remaining stores.

The retailer had applied for permission to liquidate the stores on Tuesday, and permission was granted at a court hearing on Friday.

The retailer, which has been in business in Canada for more than six decades, has been trying to restructure itself under court supervision since earlier this summer.

Company chairman Brandon Stranzl had been trying to put together a bid to keep the company going while it restructured itself, but those efforts did not materialize into a planthat would have allowed the chain to continue, in the judge's estimation.

"I am satisfied that there is no other viable alternative," Justice Glenn Hainey said.

More than 12,000 people still work at the chain's roughly 130 remaining stores acrossCanada, which includes 74 Sears stores, eight Sears Home stores, and 49 Sears Hometown stores, which are independently owned and operated but affiliated with the company.

Although the news came suddenly on Friday, it was the end of a long process that began years ago. Even before entering restructuring in June, Sears Canada had seen dwindling sales for several years, as the chain was waylaid by growing debt loads and shifting consumer tastes toward online sales, where the chain got left behind.

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