In an attempt to restructure their business, Sears Canada announced today that it is seeking creditor protection in court.
The company plans to close of 20 full-line locations, 15 "Sears Home" stores, 10 "Sears Outlets" and 14 "Sears Hometown" locations. In Ontario, stores in Scarborough, Woodbridge, Orangeville, Cornwall and Chatham will be closing their doors.
Sears Canada
The retailer also intends to cut approximately 2,900 positions, both in stores and at the corporate level.
This news follows a difficult year for the retail giant. After losing more than 80 per cent of its value, suffering plummeting stocks, and going through numerous shifts in leadership, the company expressed "significant doubt" about its future last week.
Should the Ontario Superior Court of Justice grant protection, the retailer will be able to establish plans with their creditors while operating under court supervision.
As for the company's plans for restructuring and brand reinvention, it will be a "long-term effort", Sears Canada explained.
Emilie Hankskamp, NEWSTALK 1010