Sears Canada is going to restructure its operations under a court-supervised process. Shares were halted on the Toronto Stock Exchange as the company announced its plans to close locations, and cut 2900 jobs.
The company has 30 days to restructure itself. 59 stores are going to be closed across the country. According to CBC, these include 20 full Sears stores, 15 Sears Home Stores, 14 Sears Hometown stores, and all 10 Sears’ outlet stores. The order was granted from the Ontario Superior Court of Justice under the Companies’ Creditors Arrangement Act (CCAA).
The company has seen improved same store sales growth two quarters in a row, a sign Sears is on the right track. Seeking protection from its creditors is a signal the company feels the need for further restructuring in order to continue its rebranding process.
Sears’ website will remain open for business, as will the storefronts unaffected by closures. For a full list of closures visit the link.