It could be the end of an era for department store retail in Canada.
Beleaguered retailer Sears Canada announced on Tuesday that it will be applying to Ontario’s Superior Court of Justice for approval to liquidate all of its remaining stores and assets.
In a news release, the company said it arrived at the decision to liquidate after “exhaustive efforts” to find a buyer that would allow it to continue as a viable business.
The move is expected to affect hundreds of jobs in B.C., most of them part time, said CKNW business analyst Robert Levy, who added the company has faced growing pressure from the e-commerce market.
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“They are the old fashioned department store and at one time they were the biggest. They were the known brand and where everyone went to go do their shopping. But they didn’t keep up with the competition and you saw new players come into the market.”
The court is expected to hear the application on Friday.
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If it is granted approval, liquidation sales could begin as early as Oct. 19 and run for 10 to 14 weeks the company said in a news release.
Sears Canada was granted protection under the Companies’ Creditors Arrangement Action on June 22.
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Earlier this year, the retailer announced the closure of three locations in B.C., including the one at Brentwood Town Centre in Burnaby, where approximately 100 jobs were lost.
Prior to Tuesday’s announcement, the company had announced the closure of 70 stores affecting as many as 4,100 employees.
Sears has recently faced criticism for handing out $9.2 million in retention bonuses for key employees while cutting retirement benefits and severance pay for former employees.
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