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Sears Canada to close stores, cut jobs in restructuring

Staff Writer |
Sears Canada said it plans to cut jobs and close stores as it restructures its operations, following years of declining sales as it has lost customers to big-box retailers, more nimble apparel companies and online merchants.

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The Canadian company, which was spun off from U.S. department-store pioneer Sears Holdings in 2012, said it planned to close 59 of its 225 stores and cut 2,900 of its approximately 17,000 workers as part of a restructuring that was approved by an Ontario bankruptcy court on Thursday.

Existing lenders have agreed to provide up to C$450 million ($340 million) in interim financing to help the company, controlled by billionaire hedge fund investor Eddie Lampert, reinvent itself as an apparel company selling discounted designer labels and low-priced clothing.

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