The Sears store at Carrefour de l’Estrie survives the purge announced by Canadian chain store Sears who is in deep financial difficulties.
The Sears store at Carrefour de l’Estrie survives … – image 1.0
The Sears of Sherbrooke does not appear on the list of stores that will have to close the doors in the unveiled country, while Sears Canada has submitted an application to the Ontario Superior Court of Justice for protection. The Companies’ Creditors Arrangement Act (CCAA) to continue the restructuring of their operations.
In total, there are 20 department stores, as well as 15 Sears Décor, 10 liquidation stores and 14 Sears appliance and mattress stores that will be closed in Canada. Approximately 2,900 positions will be eliminated throughout its retail network and headquarters in Toronto.
Drummondville, however, is on the list of those called to cease their activities.
Sears Canada explained in a news release that “the ongoing liquidity pressures facing the Company and the old components of its operations are preventing it from further advancing its efforts and restructuring its long-standing assets and businesses in Outside of a proceeding under the CCAA “.
If the application for protection is accepted, the Sears Canada Group will endeavor to complete its restructuring quickly and look forward to avoiding the protection offered by the CCAA as soon as possible in 2017.
Sears Canada had warned last week that it had been unable to borrow as much money as it had anticipated, which “cast a serious doubt on the Company’s ability to continue operating.”
The company had explained that it would be able to borrow only $ 109 million of the $ 175 million it said it needed.
The release noted that Sears continues to face a very challenging environment, recurring operating losses and negative operating cash flows over the past five years, and has experienced net losses since 2014.
In the first quarter, Sears Canada posted a net loss of $ 144.4 million or $ 1.42 per share compared to a loss of $ 63.6 million or 62 cents per share last year.
Its quarterly revenues decreased by 15.2 percent to $ 505.5 million.
Same-store sales increased 2.9 per cent in the first quarter compared with the same quarter last year.
The Investment Industry Regulatory Organization of Canada (IIROC) had suspended trading on the Sears Canada stock.