Selling Sears
Court grants Canadian retail company approval to begin liquidation sales Friday
Sears Canada has been given approval to begin the liquidation sales Friday at the 59 locations it plans to close.
Ontario Superior Court Judge Barbara Conway approved the motion Tuesday.
Earlier in the day, Sears lawyer Jeremy Dacks said the company wanted to start sales of its merchandise, furniture, fixtures and equipment as soon as possible so it can “maximize” benefits for its stakeholders.
The liquidation sales will only occur at the 59 stores that are set for closure. They will begin Friday and run until Oct. 12, with the majority to be overseen by a third-party liquidator.
Current employees in the stores pegged for liquidation will be asked to stay on the job until the sales are complete and the locations are shut down.
The beleaguered department store owner has been operating under court protection from creditors since June 22 when it announced its plan to shutter 59 stores and cut approximately 2,900 jobs.
Last week, Ontario Superior Court Judge Glenn Hainey gave the company the green light to begin the process of putting itself up for sale. He also gave the retailer approval to pay $9.2 million in retention bonuses to executives and other key employees.
The payout was part of a compromise with retired employees that will see Sears Canada continue making some benefit and pension payments to retirees until Sept. 30.
Founded in 1952, Sears Canada says it hopes to exit court protection as soon as possible this year.