Canada column for Sunday, June 25/17
THE CANADIAN REPORT
(c) By Jim Fox
Battered by slow sales for several years, Sears Canada Inc. will close 59 of its 225 stores as it receives bankruptcy protection to restructure.
The retailer will cut 2,900 jobs under the court-supervised restructuring approved by the Ontario Superior Court.
It received 30 days of protection from creditors while it “tries to revamp its business” and seek up to $450 million in financing, the company said.
Sears stores will continue to operate, except for those closing – 20 department stores, 15 Sears Home stores, 14 Sears Hometown locations and all 10 outlet locations.
In order to “right-size” its business, Sears said it intends to emerge as a “leaner, more focused operation better able to compete in the hyper-competitive retail industry.”
Founded in Canada in 1952 as Simpsons Sears, it employs about 17,000 people.
Marketing strategist Tony Chapman said Sears’ problems were “inevitable” as low-cost producers such as Amazon and Walmart continue “to eat your lunch.”