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Sears Canada won’t honour warranties after Oct. 18; liquidation to start Oct. 19

WATCH: Sears Canada announced on Monday that after Oct. 18, Sears Protection Agreements won't be honoured. – Oct 16, 2017

Sears Canada announced on Monday it won’t be able to honour Sears Protection Agreements (SPAs) on its products after Oct. 18. Liquidation sales at its remaining 131 stores are set to start Oct. 19, the company also said.

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READ MORE: MAP: Sears Canada locations that could be liquidated and shut down this year

Most customers will still be able to count on a one-year manufacturer’s warranty, the retailer noted in a press release. Those who purchased an SPA in the past 30 days will also be able to get refunds.

READ MORE: Sears closing after 65 years in Canada; court grants complete liquidation

It’s unclear what repair services Sears customers will be able to rely on. The company said it is looking for a purchaser for its Sears Canada Product Repair Services (PRS) business but added that “the terms upon which an acquirer of that business would provide services … are not known at this time.”

Servicing agreements on furniture and mattresses under the Guardsman (Valspar) protection plan, on the other hand, will hold.

READ MORE: Bob Layton Editorial: No Christmas cheers for Sears Canada

Sears said it will continue to accept Sears gift cards and allow customers to redeem Sears Club Points throughout the liquidation period.

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However, all liquidation sales will be final, with products not returnable or exchangeable.

Delivery service will be available until Nov. 30, 2017.

WATCH: Sears Canada granted approval to begin liquidation

Executive chairman resigns

Sears also announced the resignation of its executive chairman, Brandon G. Stranzl.

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“In light of the liquidation, his services are no longer required,” the company said in the press release.

The retailer received court approval to proceed with a full liquidation of its remaining stores on Oct. 13, marking the end of an era for a 65-year-old chain that was once a staple at malls across the country.

READ MORE: Sears Canada: Here’s how many jobs each province will lose

Stranzl had led a group of buyers who began discussions to purchase Sears Canada and continue to operate it. Stranzl had stepped away from his role with the company in August in order to focus on the bid.

Ultimately, however, the company announced last week that it had failed to find a “viable” solution to allow it to continue to stay in business.

On Friday, the Ontario Superior Court granted it permission to begin liquidating the rest of its stores.

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READ MORE: Sears closing will erase more jobs than Canada added in the month of September

Sears currently has 74 full department store locations, eight Sears Home Stores, and 49 Sears Hometown stores, facing closure. It currently has approximately 12,000 employees, three-quarters of which are part-time.

That tally doesn’t include the 2,900 job cuts Sears Canada previously announced in June, when it announced the closure of 20 department store locations, 15 Sears Home stores, 10 Sears Outlet and 14 Sears Hometown locations.

SOUND OFF: How do Sears Canada closures and end of warranty coverage affect you?

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With files from the Canadian Press

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