Retail chain Sears Canada and its subsidiaries are seeking approval from the Ontario Superior Court of Justice to liquidate all of its remaining stores and assets.
If received, the approval will result in store closures and loss of jobs. Once obtained, the retailer intends to commence liquidation sales at its stores beginning next week and set to continue for ten to 14 weeks.
The development comes after the company secured protection under the Companies' Creditors Arrangement Act (CCAA) in June this year.
The company had then announced its decision to close 59 stores and cut 2,900 positions as part of a court-supervised restructuring plan.
In addition, the company obtained the court's approval to undertake a sale and investment solicitation process (SISP), which allowed it to look for potential buyers or parties that would evince interest to invest in its business, assets and leases.
Sears Canada said in a statement: “Sears Canada received and implemented going concern transactions for various lines of business, but following exhaustive efforts, no viable transaction for the company to continue as a going concern was received.
“Accordingly, Sears Canada, with the recommendation of its advisors and approval of the monitor, FTI Consulting Inc, is seeking an order to commence a liquidation that would result in a wind-down of its business following court approval.”