An Ontario judge has granted Sears Canada permission to liquidate its 130 remaining stores.
That will put another 12,000 employees out of a job.
The retailer has said it would begin liquidation next week, and the process would take about 10 to 14 weeks to complete.
In June, the company received creditor protection, which meant they did not have to pay severance to almost 3,000 workers they laid off in the spring.
Executive chairman Brandon Stranzl led a group that had been trying to purchase the beleaguered company, but his efforts failed.