Last June, Sears Canada (OCTMKTS: SRSCQ) announced the closure of 59 stores across Canada. This announcement was made in the context of a court overseen restructuring. Despite these efforts to keep Sears Canada alive, the news of the last few days does not seem encouraging for the retailer.
The monitor assigned by the Supreme Court of Ontario indicated that Sears Canada was losing money but had enough liquidity to fund operations until November 7. He also mentioned that a proposal by an investor group to acquire the retailer would provide less money to the creditors than the liquidation of all assets and would be difficult to materialize before liquidities run out.
This unwelcoming news probably indicates the end of the retailer. Sears Canada has not been able to adapt to the technological changes that have affected the industry. This situation also shows a major change in consumer habits. Indeed, e-commerce has grown to such an extent that it is essential for traditional retailers to adjust to this change.
Sears Canada to seek court approval for more time to close stores. (2017, octobre 2). Consulté 6 octobre 2017, à l’adresse http://www.cbc.ca/news/business/sears-canada-1.4316700
Paddon, D. (2017, octobre 3). Sears Canada running low on funds, time to reach Stranzl deal: Monitor – Article. Consulté 6 octobre 2017, à l’adresse http://www.bnn.ca/sears-canada-running-low-on-funds-time-to-reach-stranzl-deal-monitor-1.874117
Harris, S. (2017, octobre 5). « Sears is doomed »: Why former execs doubt troubled retailer can survive. Consulté 6 octobre 2017, à l’adresse http://www.cbc.ca/news/business/sears-canada-restructuring-liquidation-brandon-stranzl-1.4330834