It's too bad one of the many mid-range department stores in the sates couldn't take over Sears. All we got for mid level department stores is Sears and The Bay. Smaller cities in Canada don't even have The Bay, just one or two Sears stores. The U.S has... Macy's, JC Penny, The Bon-Ton, Kohl's, Dillard's, Ross, Boscov's..etc.
TORONTO, Oct. 2, 2014 /CNW/ - Sears Canada Inc. (the "Company") (TSX: SCC) announced today that, in connection with the rights offering announced by Sears Holdings Corporation (NASDAQ: SHLD), Sears Holdings and the Company have agreed to extend the agreement pursuant to which the Company licences the right to use the "Sears" name and certain other brand names associated with a number of its major product lines. With this change, the agreement will continue to apply for so long as Sears Holdings continues to own 10% of the voting shares of the Company (the current trigger is 25%) and the Company will have the continued right to use the trademarks on a royalty-free basis after termination for 5 years (currently 3 years).
If, prior to the completion of the 5-year period, the Company reasonably determines that a longer transition period is necessary, Sears Holdings will extend the license agreement for a further transition period not to exceed 4 years, at a below market rate.
That would be interesting. Perhaps even pull the Eaton family back in as investors?This has raised speculation that if Sears US pulls out completely (less than 10% holdings), Sears Canada may revert to another trademark it owns, like EATON'S - and they have a 5 year transition period to cease using the Sears name after termination of the licence (extendable by 4 more years for a fee).
That would be interesting. Perhaps even pull the Eaton family back in as investors?
Rich people generally don't do terribly stupid things with their money.
We have the winning answer!Indeed. They much prefer to do terribly stupid things with other people's money.