Sears Canada cutting 2,900 jobs, closing 59 stores, secures creditor protection
TORONTO — Sears Canada will close 59 stores and cut approximately 2,900 jobs under a court-supervised restructuring, the beleaguered retailer said Thursday following years of dwindling sales and a revolving door of top executives.
The announcement came after the Ontario Superior Court of Justice granted the department store chain temporary protection from creditors under the Companies’ Creditors Arrangement Act (CCAA).
The company plans to continue operating throughout the restructuring and said it intends to emerge as a leaner, more focused operation better able to compete in the hyper-competitive retail industry.
“However, to achieve that goal and to right-size its business, the Sears Canada Group anticipates that a number of stores will have to be closed, operating costs reduced, business lines exited, and head count reductions implemented,” Sears Canada said in documents filed with the court.