Sears Canada Files for Creditor Protection
Sears Canada says it is seeking court protection from its creditors in order to restructure its business.
The retailer is a separate, publicly traded company that was spun off from Sears Holdings in 2012. It has piled up losses and seen its stock nosedive, losing more than 80 per cent of its value in the last year.
Just last week, the company warned there was “significant doubt” about its future and that it could be sold or restructured. Sears Canada said then that cash and forecast cash flows from operations are not expected to be sufficient to meet its obligations over the next 12 months.
Sears Canada said Thursday it has applied to the Ontario Superior Court of Justice for protection under the Companies’ Creditors Arrangement Act
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The Associated Press