Report: Sears Canada gets court approval for liquidation
After 65 years in business, Sears Canada is officially closing its doors.
The long-struggling department store chain won court approval to begin liquidating all its remaining assets starting Oct. 19. The move will affect 12,000 employees, according to Reuters.
According to the report, the approval was granted by the Ontario Superior Court of Justice, which also extended creditor protection for Sears Canada to Jan. 22, 2018. The public liquidation sales are set to end on Jan. 21, 2018.
In June, Sears Canada filed for protection from its creditors and announced it would be restructuring under Canada’s Companies’ Creditors Arrangement Act. At that time, the company got court approval of a sale and investment solicitation process (SISP) to seek out proposals for the acquisition of, or investment in, the Sears Canada Group’s business, assets and/or leases, and to implement one or a combination of proposals.
Sears Canada received and implemented going concern transactions for various lines of business. Despite exhaustive efforts, no viable transaction for the retailer to continue as a going concern was received.
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