Sears Canada liquidation sales commences on July 21
Jeremy Dacks, lawyer for Sears Canada said in the court that it was crucial to allow the retailer to start selling its merchandise, furniture, and equipment as soon as possible so as to get the maximum profits for the stakeholders.
The motion, which was nearly 300-page long, was fully supported by the lawyers involved in the proceedings, including representatives of the company, the landlords, the monitor and current and ex-employees, CBC News reports said.
After announcement of its plan to shut down 59 stores and cut approximately 2,900 jobs, Sears Canada had been operating under court protection from creditors since June 22.
Sears Canada was founded in 1952 and operates in 239 locations, including department stores, Hometown stores, Home Stores, distribution centres and warehouses.
Besides, it also owns 16 franchises under the Corbeil banner, a specialty major appliances chain.
The chain plans to shut down 20 full Sears stores, 15 Sears Home Stores, all 10 outlet stores and 14 Sears Hometown stores, which is about one-third of its current retail stores.
The sales reportedly would be starting on July 21 and would continue till Oct. 12.
Only the 59 department and Sears Home stores that have been slated for closure would be offering discounts.
Signs permitted to be used, said News report, to advertise the sales in the Sears stores would be "Everything On Sale," "Everything Must Go," and "Store Closing" or similar wording while the motion prohibited signs to say "Bankruptcy," "Liquidation" or "Going out of Business."
While a third-party liquidator would reportedly be responsible for the majority of the sales, current employees were asked to stay on the job until completion of the sales and the locations are shut down.
Hainey also approved executives and other key employees be paid $9.2 million in retention bonuses by the retailers, while retirees would be compensated by getting their pension payments until Sept. 30 of this year.
(Reporting by Asha Bajaj)
Sears Canada: Twitter
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