Jun 22, 2017 @ 12:20
Sears Canada has announced the closing of 20 full-line locations, plus 15 “Sears Home” Stores, 10 “Sears Outlet” and 14 “Sears Hometown” locations as well as a reduction in its workforce of approximately 2,900 positions. It is not known yet the details of each store’s closing.
The Sears store in the Station Mall is amongst the 20 full-line locations scheduled to close.
From their press release “the Initial Order provides for a stay of proceedings in favour of the Sears Canada Group for an initial period of 30-days, subject to extension thereafter as the Court deems appropriate, and the appointment of FTI Consulting Canada Inc. as Monitor in the CCAA proceedings. The Initial Order also authorizes the Sears Canada Group to obtain debtor-in-possession financing in the aggregate principal amount of C$450 million (the “DIP Financing”), with (i) the Company’s existing ABL lenders, with Wells Fargo Capital Finance Corporation acting as administrative agent, and (ii) the Company’s existing term loan lenders, with GACP Finance Co., LLC acting as administrative agent.
The DIP Financing is expected to provide the Sears Canada Group with sufficient liquidity to maintain business operations throughout the CCAA proceedings. The Sears Canada Group will work to complete its restructuring in a timely fashion and hopes to exit CCAA protection as soon as possible in 2017, better positioned to capitalize on the opportunities that exist in the Canadian retail marketplace.”
It doesn’t appear that the Wawa Catalogue Store will be affected by this closure.