With the continued rise of online shopping, it's looking like big-box retailers are becoming a thing of the past. This is incredibly bad news for companies like Sears, who will officially shut down its Canadian operation by the end of 2017. It's a tough pill to swallow for the historic department store chain who has served millions of Canadian buyers since 1952.
A company statement was sent out on Tuesday, with a subsequent release confirming the unfortunate news to national media outlets. With little notice, Sears spokespeople were forced to quickly enter damage control. "The company deeply regrets this pending outcome and the resulting loss of jobs and store closures," a press release read. The closure will effect a whopping 12,000 employees working at roughly 131 locations throughout the country. This number doesn't include the 800 people currently in Sears Canada's main office, most of whom will be out of work as early as next week.
Earlier this year, we reported that the retailer was engaging in a restructuring plan that would see the closure of 59 stores across Canada. The move was met with criticism from employees and potential investors, but Sears remained optimistic that they could continue operating by cutting costs. Obviously, this hasn't been the case, and the corporation is now heading to the Ontario Superior Court of Justice for approval to liquidate all of its stores and assets.
Sears failed to find any suitable investors this summer who were willing to save the enterprise from completely going under. Now, the department chain will begin 10-14 weeks of liquidation sales in order to permanently close for good. For more information on the termination, read the press release here.