Retailer seeks to begin liquidation sales no earlier than Oct. 19
Sears Canada said Tuesday it plans to seek court approval to begin liquidation of all of its remaining stores and assets.
"Sears Canada, with the recommendation of its advisers and approval of the monitor, FTI Consulting Inc., is seeking an order to commence a liquidation that would result in a wind-down of its business following court approval," Sears Canada said in a release.
"The company deeply regrets this pending outcome and the resulting loss of jobs and store closures," the retailer said.
Sears Canada said that if it gets court approval to begin the process, it expects that liquidation sales at its stores would start no earlier than Oct. 19 and continue for 10 to 14 weeks.
Sears Canada has been in court-approved creditor protection since June 22.
After it was granted protection, Sears received permission from the court to seek out a buyer or investors.
Hope for a potential buyer resided in a bid led by Canada's executive chairman, Brandon Stranzl, who pledged to keep Sears in operation and save thousands of jobs.
However, the company said Tuesday that "following exhaustive efforts, no viable transaction for the company to continue as a going concern was received."
The company announced in June that it would be closing almost 60 stores.
Last week, it received court approval to close 11 other stores. At that court hearing, a lawyer for FTI Consulting warned that Sears Canada was running out of time and money.
At the same hearing, a lawyer for the lenders that provided the retailer with financing while it is in creditor protection said that if a buyer couldn't be found, then it would be key to liquidate before the Christmas season is over in order to maximize the value the process could generate.