Update: After 65 years, Sears Canada is closing. The retailer obtained court approval on Friday to liquidate its remaining stores, a move that will affect around 12,000 jobs.
As many as 12,000 jobs could be lost if Sears Canada receives court approval to liquidate its remaining stores on Oct. 13 — and the majority of those jobs are in Ontario and Quebec, the company just told Global News.
READ MORE: Sears Canada to apply to liquidate all remaining stores, affecting 12,000 jobs
Ontario could shed nearly 5,500 jobs, while Quebec could stand to lose over 2,500 positions. British Columbia would also be hard hit, with as many as 1,200 workers affected.
Here’s the complete provincial breakdown provided by Sears:
British Columbia: 1,204 jobs affected
Alberta: 996 jobs affected
Saskatchewan: 124 jobs affected
Manitoba: 359 jobs affected
Ontario: 5,443 jobs affected
Quebec: 2,663 jobs affected
New Brunswick: 452 jobs affected
P.E.I: 85 jobs affected
Nova Scotia: 246 jobs affected
Newfoundland: 190 jobs affected
The troubled retailer announced yesterday it is seeking court approval to liquidate all of its remaining stores and assets, which would put it out of business and lead to as many as 12,000 job losses across Canada.
WATCH: Sears Canada applies for liquidation
The court hearing is expected to take place on Oct. 13. Pending court approval, liquidation sales would start no earlier than Oct. 19 and continue for 10 to 14 weeks, Sears said.
The company is now looking to close all of its remaining stores, which amounts to 130 stores. That would include 74 full-line stores, eight Sears Home stores and 49 Hometown stores. That list includes the 11 store closings Sears Canada recently announced, according to the spokesperson.
READ MORE: MAP: Sears Canada locations that could be liquidated and shut down this year
“The company deeply regrets this pending outcome and the resulting loss of jobs and store closures,” Sears Canada said in a statement on Tuesday.
Last week, Sears received a revised bid from a buyer group led by its executive chairman Brandon Stranzl to buy the business and keep it operating. It was the latest move in a weeks-long discussion process after Stranzl stepped away from his role to launch the bid.
However, on Tuesday, the retailer said that “following exhaustive efforts, no viable transaction” was received. A lawyer for Stranzl did not immediately respond to requests for comment.
WATCH: Retail expert weighs in on Sears Canada’s troubles
Mark Caiger, managing director of mergers and acquisitions at BMO Nesbitt Burns Inc., says in his affidavit that he understands Stranzl “continues to have communications with certain stakeholders regarding a potential going concern transaction,” according to court documents.
Sears Canada’s court-appointed monitor, FTI Consulting Canada, told the court last week it would consider the revised bid but the company was running out of money and time.
READ MORE: Sears Canada running out of options to stay afloat, missing $200K for employee fund
Sears Canada currently has 74 full department store locations, eight Sears Home Stores, and roughly 49 Sears Hometown stores, facing closure, according to company spokesman Joel Shaffer. The retailer currently has approximately 12,000 employees, three-quarters of whom are part time, Shaffer added.
Of the roughly 800 employees in Sears Canada’s head office, the vast majority will leave next week, he said.
That tally doesn’t include the 2,900 job cuts Sears Canada previously announced in June, when it revealed the closure of 20 department store locations, 15 Sears Home stores, 10 Sears Outlet and 14 Sears Hometown locations.
Sears Canada has been operating under the Companies’ Creditors Arrangement Act since June, but had been struggling for years as consumers gravitated towards e-commerce and away from big department stores.
– With files from the Canadian Press
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