CORNWALL, Ontario – Sears Canada announced on Thursday, June 22 that the outlet store in Cornwall will be closing.
The announcement came as the company files for bankruptcy protection from its creditors under the Companies’ Creditors Arrangement Act (CCAA).
The store in Cornwall is one of 59 Sears locations that will be closing across Canada.
The company says that it is necessary for it to seek bankrunptcy protection in order to pursue a massive restructuring plan, which the closure of stores is a part of.
“Over the past 18 months, Sears Canada embarked on a reinvention plan that has now begun to gain traction with customers,” the company states in a press release. “The brand reinvention work Sears Canada has begun requires a long-term effort, but the continued liquidity pressures facing the Company as well as legacy components of its business are preventing it from making further progress and from restructuring its legacy assets and businesses outside of a CCAA proceeding,” the press release continues.
The company did not give a specific timeline for store closures, but said it will be proceeding with this restructuring as soon as possible.
“The Sears Canada Group will work to complete its restructuring in a timely fashion and hopes to exit CCAA protection as soon as possible in 2017, better positioned to capitalize on the opportunities that exist in the Canadian retail marketplace,” the company explained in a second press release.
