Sears Canada was granted protection from its creditors in Ontario Superior Court this morning, allowing it to restructure, closing 20 department stores and 39 Sears Home, Sears Outlet and Sears Hometown stores across Canada. 2,900 jobs will be lost in stores and at its corporate head office in Toronto. None of the Sears Canada department stores in the GTA will be closed — most of those being closed are located in smaller communities across Canada.Two Sears department stores in Ontario will close: in Brockville and Sault Ste. Marie.Nine of the 15 Sears Home stores closing are in Ontario, including one in Scarborough. Ten Sears Outlet stores will close across Canada and 14 Sears Hometown stores.According to the press release, monthly pension payments to beneficiaries from the Sears Canada pension plan are not affected and will continue in accordance with the terms of the plan. The pension assets — amounts that have previously been contributed to the pension plan — are held separate from the assets of Sears Canada Group, according to the statement. The initial court order provides a 30-day period for the company, subject to extensions.FTI Consulting Canada Inc. has been appointed as monitor in the proceedings under the CCAA (Companies’ Creditors Arrangement Act.)“The Sears Canada Group will work to compete its restructuring in a timely fashion and hopes to exit CCAA protection as soon as possible in 2017, better positioned to capitalize on the opportunities that exist in the Canadian retail marketplace,” according to a press release from the company.Just last week, Sears Canada warned there was “significant doubt” about its future, which sent already-low share prices tumbling.Read more:Sears Canada shares plunge amid report it’s preparing to seek creditor protectionSears Canada takes hit after creditor-protection reportSears Canada raises ‘significant doubt’ about its future, seeks buyerTr ...
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