The global economy is grinding to a halt as Sears Canada is forced to close 60 stores and lay off thousands of workers

Wednesday, July 5, 2017
By Paul Martin

by: Ethan Huff
NaturalNews.com
Wednesday, July 05, 2017

More signs of an impending mass retail collapse are emerging, this time in Canada. According to new reports, struggling department store giant Sears is planning to close 60 stores throughout Canada, eliminating nearly 3,000 jobs in the process and setting the company on a track towards bankruptcy.

Sears Canada announced in a press release that it recently filed for creditor protection under Canadian law. While the company plans to massively downsize and restructure itself, with hopes to eventually reemerge under a new corporate model, it has a lot of debt to deal with first.

Part of the company’s restructuring plan involves seeking $340.1 million ($450 million in Canadian dollars) from its term loan and asset-backed loan lenders for debtor-in-possession financing. Wells Fargo Capital Finance Corporation and GACP Finance Co., LLC will together act as administrative agents in helping Sears to reach this goal.

In the meantime, 20 full-line Sears stores, 15 Sears Home stores, 10 Sears Outlet stores, and 14 Sears Hometown stores will all be closing their doors. Thousands of employees at these stores will obviously lose their jobs, as will many employees who work at the company’s Canadian headquarters in Toronto.

“After five years of operating losses and negative cash flow, the Canadian retailer said in a June 13 release that ‘cash and forecasted cash flows from operations are not expected to be sufficient to meet obligations coming due over the next 12 months,’” writes Ben Unglesbee for RetailDive.com.

“Prompting the statement were negotiations with lenders for a liquidity injection that fell short of the retailer’s needs.”

Sears Canada parts ways with U.S. parent, embarks on ‘reinvention plan’ that’s already showing signs of success

The Rest…HERE

Leave a Reply

Join the revolution in 2018. Revolution Radio is 100% volunteer ran. Any contributions are greatly appreciated. God bless!

Follow us on Twitter