Toronto -- Sears Canada Inc. said on Friday it is shutting down three downtown stores in Vancouver, Calgary and Ottawa. The move follows an announcement last month by Sears Holdings, the majority owner of Sears Canada, that it will raise about $770 million by spinning off parts of its business and selling prime real estate.
“While we had no plans to close stores, the transaction for these three specific locations provides an attractive financial benefit for the company which strategically allows us to drive growth in areas which can be most beneficial,” said Calvin McDonald, president and CEO, Sears Canada Inc. We are investing in a refresh of our stores and piloting new formats which will provide Canadians exciting ways to access Sears products and services.”
Sears Canada plans to close locations at the Vancouver Pacific Centre, the Calgary Chinook Centre and the Ottawa Rideau Centre by Oct. 31, 2012. It will return the locations to developer Cadillac Fairview Corp Ltd for C$170 million. The transaction is expected to close on or around April 20.