Sears Canada (1952-2017)

[Skeezix]

I think the problem is that they will run out of money before any plan can be implemented. This plan to ape Winners seems to be having some success, but it seems too little, too late.

Unless someone with lots of $ buys Sears Canada. But in this climate, who wants it? The leases aren't even worth that much, given that anyone interested in the space could probably get a better price once Sears goes bankrupt.

 

[Skeezix]

They are preparing for creditor protection, with the expectation that the company will be liquidated. This is sad.

Sears Canada Is Said to Prepare to Seek Creditor Protection
Bloomberg, 20 June 2017

 

[Admiral Beez]

Is there any turning around at this point?

No. Expenses now exceed costs at an increasing rate. Anything of value except the Kenmore brand has been sold off.

What last-ditch plan could Sears do now that would keep themselves as a business (though not necessarily one that operates department stores) alive?

None. I imagine they haven't hired a soul in months http://careers.sears.ca/

 

[Skeezix]

Anything of value except the Kenmore brand has been sold off.

They don't own Kenmore.

 

[Amare]

No. Expenses now exceed costs at an increasing rate. Anything of value except the Kenmore brand has been sold off.None. I imagine they haven't hired a soul in months http://careers.sears.ca/

Actually, their hiring freeze began roughly a week ago.

People can pass blame around as to what the cause of the downfall was, but 80% of the blame falls on the head of one Uncle Eddie Lampert. Blame the other 20% of the revolving door of CEOs the company has had in the past 10 years, each with their own vision that was at best half-implemented before leaving.

 

[Skeezix]

What supplier is now going to send goods to Sears unless they are paid upfront?

 

[Fritter]

There's a big 1980s-era warehouse in Belleville, but who needs a warehouse in Belleville?

Possible distribution centre for any of the web based retailers? Pretty Central to Ottawa, Toronto and some extent Montreal

 

[ShonTron]

Possible distribution centre for any of the web based retailers? Pretty Central to Ottawa, Toronto and some extent Montreal

But no easy cargo airport access. It has rail, but not an intermodal yard.

Most new large warehouses in Ontario have been built in the GTHA (especially Vaughan/Brampton/Mississauga/Milton, close to Pearson, highways and the railway intermodal yards), and Cornwall, which is close to the border, a mere hour or so from Dorval Airport and intermodal yards, and can efficiently serve Quebec and Eastern Ontario.

 

[Amare]

I can confirm here that there will be some mass layoffs tomorrow. Im unsure of the exact numbers, but it will affect their head office with *potentially* store employees as well.

If it's only the head office, the numbers will be smaller, but if it includes some store employees as well the numbers will be larger.

 

[Skeezix]

According to the Globe, they are trying to close about a third of the stores once under creditor protection, but salvage the rest of the chain. But they are struggling to secure financing that would be shielded from creditors.

 

[Skeezix]

Well, that didn't take long.

Sears Canada files for creditor protection
The Globe and Mail, 22 June 2017

Unclear to what extent they got their ducks in a row before the filing.

Landlords (and even suppliers) won't want another Target. Likely will cut them slack.

 

[jje1000]

How closely tied to Sears (in the US) is Sears Canada?


Edit- still pretty closely in terms of ownership:

Sears Holdings still holds 12% of the Canadian business's stock. Billionaire Eddie Lampert, the CEO of Sears Holdings, owns 45% of Sears Canada's shares.

http://www.businessinsider.com/sears-canada-files-for-creditor-protection-2017-6

If Sears Canada can free itself from Lampert's control (doubtful), it might have a bit more of chance.

 

[AlvinofDiaspar]

From the Globe:

https://www.theglobeandmail.com/rep...iles-for-creditor-protection/article35418399/

I admit - numbers notwithstanding, I am a little surprised that they still have that many stores to close.

AoD

 

[ShonTron]

Twenty full-line department stores closed, 15 Sears Home stores, 10 Sears Outlet stores and 14 Sears Hometown (small town) locations.

The full-line department stores closed are: Medicine Hat (Mall), Grande Prairie (stand-alone), Lloydminster (Lloyd Mall), Red Deer (Bower Place), Kamloops (Aberdeen Mall), Bathurst (Place Bathurst Mall), Saint John (McAllister Place), Corner Brook (Corner Brook Plaza), Truro (Mall), Dartmouth (Penhorn Plaza, an already-dead and mostly demolished mall), Brockville (1000 Islands Mall), Sault Ste. Marie (Station Mall), Hull (Les Galeries de Hull), Chicoutimi (Place du Saguenay), St. Georges de Beauce (Le Carrefour Saint-Georges), Alma (Le Centre Alma), Drummondville (Promenades Drummondville), Regina (downtown Cornwall Square), Moose Jaw (a clearly dying Town ‘n’ Country Mall), Prince Albert (downtown Gateway Mall).

Almost all are in smaller cities. Most are in smaller, struggling malls. In some of these places like Brockville, Bathurst, Lloydminster, Corner Brook, and Truro, Sears was the only department store in town.

All the but one outlet stores mentioned -- Abbotsford (Seven Oaks), Winnipeg (Garden City), Cornwall Square, Downtown Chatham Centre, Cambridge Centre, Timmins Square, St-Eustache, Montreal (Place Vertu), Sorel, were previously full-line stores, in malls. The exception, Halifax Outlet, was the old Sears store before it moved to the Eaton's space across the street.

The Cornwall and Chatham stores were in downtown malls, much like the various Eaton Centres in places like Brantford and Sarnia and Peterborough.

Before the recent decline, Outlet Stores were were built as Outlet Stores, like the Brampton Queen Street store or the Rexdale location, or were converted K-Marts.

 

[Skeezix]

The latest version of the Globe article states: "The CCAA plan calls for dropping product categories that have long been associated with the Sears brand, such as home appliances, tools, electronics and auto parts."

The only reason most people I know ever go to Sears is for appliances. No more of that. Sears will increasingly = Winners, but with its own in-house brands thrown in.