Future of Sears Canada looks grim, posts $144-million loss


spaminator
#1
Future of Sears Canada looks grim, posts $144-million loss
Aleksandra Sagan, THE CANADIAN PRESS
First posted: Tuesday, June 13, 2017 10:21 AM EDT | Updated: Tuesday, June 13, 2017 01:31 PM EDT
TORONTO — Sears Canada said Tuesday there is “significant doubt” about its future and it could sell or restructure itself, the latest sign of how the retail sector is being upended by the rise of online shopping.
The retailer, known for catalogues that were a staple in the homes of generations of Canadians, saw its shares plummet by 39% to 70 cents on the Toronto Stock Exchange minutes after the opening bell.
It said based on its current assessment, cash and forecast cash flows from operations are not expected to be enough to meet its obligations over the next 12 months.
“The company continues to face a very challenging environment with recurring operating losses and negative cash flows from operating activities in the last five fiscal years, with net losses beginning in 2014,” Sears Canada said in a statement.
“While the company’s plans have demonstrated early successes, notably in same-store sales, the ability of the company to continue as a going concern is dependent on the company’s ability to obtain additional sources of liquidity in order to implement its business plan.”
The announcement came as Sears Canada reported a first-quarter loss of $144.4 million, more than double what it was a year ago, and a 15.2% decline in revenue.
Sears Canada said it had expected to be able to borrow $175 million, but that has been reduced to about $109 million. It said it also lacks other assets, such as real estate, that can be monetized in a timely manner.
“Accordingly, such conditions raise significant doubt as to the company’s ability to continue as a going concern,” it said.
While there were improvements in sales at its stores, revenue fell by about $90 million to $505.5 million due to a drop in its catalogue and online sales.
Sears Canada also postponed its annual meeting, which had been scheduled for Wednesday, until an unspecified date.
According to its 2016 annual report, the company had 95 department stores, 26 Sears Home locations and 14 outlets.
Future of Sears Canada looks grim, posts $144-million loss | Canada | News | Tor
 
Danbones
#2
...and the sales are not showing up with other on line merchants
the sales are not happening at all...
 
spaminator
#3
Sears Canada preparing to seek bankruptcy protection: report
THE CANADIAN PRESS
First posted: Wednesday, June 21, 2017 10:03 AM EDT | Updated: Wednesday, June 21, 2017 09:32 PM EDT
TORONTO*-*Sears Canada’s stock plunged more than 20% Wednesday following a report that it’s preparing to seek court protection from creditors.
The shares fell 22.5%, or 18 cents, to 62 cents on the Toronto Stock Exchange.
The stock has been on a nosedive in the last year — losing more than 80% of its value — and just last week the company warned there was “significant doubt” about its future and that it could be sold or restructured.
Sears Canada didn’t respond for comment.
Bloomberg, citing unnamed people it said were familiar with the matter, reported that the company is preparing to seek court protection from creditors within weeks and that the business could be sold off in pieces.
The Toronto-based retailer and its American counterpart have been suffering from dwindling sales for years as a result of changes to consumer buying patterns and new competition, particularly from online shopping.
In April, Sears Canada announced that its 2016-17 loss was $321 million.
Shareholders rank after lenders and creditors in a court-supervised bankruptcy proceeding, so Sears Canada shares could lose most or all of their value if it files under the Companies Creditors Arrangement Act or Bankruptcy and Insolvency Act.
According to regulatory documents, its biggest direct and indirect shareholder is billionaire Edward S. Lampert, who also controls the Sears Holding Corp. — a public company that owns Sears and Kmart stores in the United States.
Shares of Sears Holdings, which retains a minority stake in the Canadian operation, dropped more than 5% Wednesday on the Nasdaq.
Efforts to reach hedge fund ESL Investments Inc. and Sears Holdings for comment were not successful Wednesday.
Sears Canada preparing to seek bankruptcy protection: report | Money | Toronto S
 
B00Mer
#4
Sears who??

Thought they were long gone already..

I Shop Amazon
 
justlooking
+1
#5  Top Rated Post
Canada, soon to be a country of only Walmart and the Dollar store.
 
Murphy
#6
I thibk it 's a matter of people not wanting to pay Sears higher prices. They have always charged more than their competition, but had a good warranty. People aren't seeing the value anymore.

Sears hasn't stayed with the times and has priced themselves out of the market.
 
spaminator
#7
Sears Canada cutting 2,900 jobs, closing 59 locations
THE CANADIAN PRESS
First posted: Thursday, June 22, 2017 09:14 AM EDT | Updated: Thursday, June 22, 2017 01:58 PM EDT
TORONTO — Sears Canada Inc. plans to close 59 locations across the country and cut approximately 2,900 jobs under a court-supervised restructuring.
The struggling retailer says it will close 20 full-line locations, plus 15 Sears Home stores, 10 Sears Outlet stores and 14 Sears Hometown locations.
The announcement came after the company was granted temporary court protection from creditors under the Companies’ Creditors Arrangement Act this morning.
Under the plan, Sears Canada has been authorized by the Ontario Superior Court of Justice to obtain up to $450 million in financing to maintain operations throughout the restructuring.
The struggling retailer has piled up losses over several years and seen its stock dive, losing more than 80 per cent of its value in the last year, despite efforts to reinvent itself at a time.
Headquartered in Toronto, Sears Canada had 94 department stores, 23 Sears Home stores and 10 outlets prior to the CCAA restructuring.
It says it hopes to exit court protection as soon as possible in 2017.
Here’s a list of where the closures are taking place:
Sears Full-Line Department Stores:
Medicine Hat, Alta.
Grande Prairie, Alta.
Lloydminster, Alta.
Red Deer, Alta.
Kamloops Aberdeen Mall, B.C.
Bathurst, N.B.
Saint John, N.B.
Corner Brook, N.L.
Truro, N.S.
Dartmouth, N.S.
Brockville, Ont.
Sault Ste. Marie, Ont.
Hull, Que.
Chicoutimi, Que.
Saint-Georges, Que.
Alma, Que.
Drummondville, Que.
Regina
Moose Jaw, Sask.
Prince Albert, Sask.
———
Sears Hometown Stores:
Cold Lake, Alta.
St. Albert, Alta.
Okotoks, Alta.
Spruce Grove, Alta.
Fort McMurray, Alta.
Leduc, Alta.
Sherwood Park, Alta.
Creston, B.C.
Sechelt, B.C.
Grand Forks, B.C.
Orangeville, Ont.
Rimouski, Que.
Rouyn-Noranda, Que.
Melville, Sask.
———
Sears Outlet Stores:
Abbotsford Retail, B.C.
Winnipeg Garden City
Halifax
Cornwall, Ont.
Chatham, Ont.
Cambridge, Ont.
Timmins, Ont.
Saint-Eustache, Que.
Montreal Place Vertu, Que.
Sorel, Que.
———
Sears Home Stores:
Calgary
Edmonton Skyview
Ancaster, Ont.
Woodbridge, Ont.
London, Ont.
Scarborough, Ont.
Kingston, Ont.
Ottawa East
Sudbury, Ont.
Windsor, Ont.
Orillia, Ont.
Saint-Bruno, Que.
Laval, Que.
Quebec City
Sainte-Foy, Que.
Sears Canada cutting 2,900 jobs, closing 59 locations | Money | Toronto Sun
 
Corduroy
#8
The problem with Sears is that they didn't adapt to the changing retail... blah blah blah.

Translation: Department stores are for the middle class and so are increasingly unnecessary.
 
TenPenny
#9
What's the first thing to go now that Sears has entered creditor protection? The severance pay and payments for benefits for pensioners.


Nice move.
 
White_Unifier
#10
Quote: Originally Posted by Corduroy View Post

The problem with Sears is that they didn't adapt to the changing retail... blah blah blah.

Translation: Department stores are for the middle class and so are increasingly unnecessary.

We kind of brought it on ourselves. Every political party has focused so much on supporting the middle class that it forgot about the poor. the result? As the poor got poorer, the middle class lost the foundation under its feet.

Once the middle class falls, the rich will be next to fall.
 
tay
#11
Quote: Originally Posted by TenPenny View Post

What's the first thing to go now that Sears has entered creditor protection? The severance pay and payments for benefits for pensioners.

Nice move.

We've seen this sort of thing before and it's time for Politicians to flip the Bankruptcy Laws to favour the workers first, Bankers and such get the leftovers if any........

It's unlikely employees will recover their losses, says Toronto labour lawyer Lior Samfiru. That's because when compensation is doled out in these situations, secured creditors like banks get priority.

Former Sears employees worry about lost severance, possible reduced pension - Business - CBC News
 
TenPenny
+1
#12
I agree, employees (with the exception of executives) should be at the front of the line with restructuring. This is thoroughly disgusting behaviour, but sadly, it's not uncommon. I expect that employee theft will suddenly skyrocket at all Sears stores.
 
Johnnny
+1
#13
I read that all the one trick ponies of the baby boomer generation who worked for Sears might be in trouble financially...

Cry me a river, you talk a big game about being able to adapt so put your money where your mouth is and quit whining about lost severance.
 
TenPenny
+1
#14
Quote: Originally Posted by Johnnny View Post

and quit whining about lost severance.



So, you won't complain when someone steals thousands of dollars from you?
 
Walter
+1
#15
Quote: Originally Posted by TenPenny View Post

So, you won't complain when someone steals thousands of dollars from you?

You go ahead and get water from a stone, the rest of us will move on.
 
TenPenny
+1 / -1
#16
Quote: Originally Posted by Walter View Post

You go ahead and get water from a stone, the rest of us will move on.



Good morning Walter, as usual, you miss the point. Sears Canada has assets, they just will give them to the banks, not to the employees who are owed severance and benefits.


I'm glad you don't care when companies steal from employees, I'm sure you'll accept it when it happens to you.
 
Johnnny
+1
#17
Quote: Originally Posted by TenPenny View Post

So, you won't complain when someone steals thousands of dollars from you?

Yes I would complain but do I care?, nope not anymore because they're the ones who are more than likely to lecture me like they know me as an individual

They put themselves in the predicament by being one trick ponies because they had it easy and let themselves slip. Not my concern
Last edited by Johnnny; Jul 10th, 2017 at 09:22 AM..
 
TenPenny
#18
Quote: Originally Posted by Johnnny View Post

Yes I would complain but do I care?, nope not anymore because they're the ones who are more than likely to lecture me like they know me as an individual

They put themselves in the predicament by being one trick ponies because they had it easy and let themselves slip. Not my concern



That's a good attitude, whine about yourself, but don't care about anyone else. No wonder you're alone. Get your mommy to give you a cookie.
 
Johnnny
+1
#19
Quote: Originally Posted by TenPenny View Post

That's a good attitude, whine about yourself, but don't care about anyone else. No wonder you're alone. Get your mommy to give you a cookie.

Alone? Because I don't have kids yet?
 
TenPenny
#20
You don't even have a fentanyl-riddled crack ho, apparently, according to your posts. Every baby boomer I know has three living in the garage. You need to step up your game.
 
Johnnny
+1
#21
Quote: Originally Posted by TenPenny View Post

You don't even have a fentanyl-riddled crack ho, apparently, according to your posts. Every baby boomer I know has three living in the garage. You need to step up your game.

Nope and im happy about that fact

I'm smart enough to not have had a kid who would be born hooked up to an IV of methadone.
 
coldstream
#22
I can't believe the Chilliwack Sears Store is not on the list of those to close. I haven't shopped much there, but the place is pretty well empty when i go in. It seems they've steadily reduced their floor inventory and don't offer near the choice, or in most cases the value, of the Big Ticket Big Box operations that operate in the same area. It's still a place where you can find higher end quality merchandise of small ticket items, as compared to Walmart.
 
Danbones
#23
...and they are saying the money is not going on line
the money is just not there
 
spaminator
#24
Sears Canada's 9.2 million retention bonuses for execs 'absolutely unacceptable,' laid off worker says
Ian Bickis, THE CANADIAN PRESS
First posted: Friday, July 14, 2017 03:52 PM EDT | Updated: Friday, July 14, 2017 03:58 PM EDT
Sears Canada’s plan to pay out millions in bonuses to keep execs and key staff on board while not paying severance to laid-off workers is being met with shock and disbelief.
“It definitely should not go to them,” said Marinella Gonzalez, who worked as a planner at the retailer’s head office for 18 years before getting laid off in June with no severance.
“This situation happened because of mismanagement, and it should not be the workers that have to pay for that.”
Gonzalez said more needs to be done to protect and prioritize worker rights when companies get into trouble.
“This is not the Canadian way.... To be treated in this way is absolutely unacceptable. I think our government needs to step in and these corporations need to smarten up.”
Ken Eady, who spent 30 years at Sears before retiring, said news of the bonuses while not paying severances was just the latest development in a terrible situation.
“To see people being paid what might be millions of dollars in bonuses for staying seems so out of balance and so unreasonable that it’s beyond the pale,” said Eady, who now works to protect the pensions of retired Sears employees at the independent SCRG retiree association.
Sears Canada got court permission on Thursday to pay $9.2 million in retention bonuses as part of a compromise with retired employees that will see the company continue making some benefit and pension payments until Sept. 30.
The retailer had initially asked the court for permission to immediately halt payments for pension, health and dental benefits for laid off employees, retirees and surviving spouses due to a severe cash crunch.
Justice Glenn Hainey wrote in his approval of the $9.2 million in payments that the details should remain confidential. But the company estimated when it sought court protection in June that it would need to pay $7.6 million for key employees at head office and $1.6 million for managers of stores that are scheduled to be closed under the restructuring.
Sears Canada spokesman Joel Shaffer said the payments are common during the creditor protection process, and are designed to keep key employees motivated with performance indicators and incentives to successfully close stores.
He said the payments are designed to support the best possible outcome for the business and stakeholders, and that the situation could worsen without them.
Along with approving the deal between the company and former employees, Hainey also gave Sears Canada the green light to immediately proceed with reaching out to potential buyers while it’s under court protection from its creditors.
Sears Canada shocked many employees when it announced in June that it planned to close 59 locations across the country and cut approximately 2,900 jobs, without severance, while under the Companies’ Creditors Arrangement Act.
Employment lawyer Susan Ursel, whose firm represents more than 17,000 non-unionized former and current employees, said Thursday they continue to push for temporary hardship fund for those who are in dire need of cash and health benefits.
Sears Canada's 9.2 million retention bonuses for execs 'absolutely unacceptable,
 
spaminator
#25
Court grants Sears Canada approval to begin liquidation sales Friday
Linda, Nguyen THE CANADIAN PRESS
First posted: Tuesday, July 18, 2017 12:54 PM EDT | Updated: Tuesday, July 18, 2017 05:07 PM EDT
TORONTO — Liquidation sales at dozens of Sears Canada locations slated for closure could begin as early as this week after an Ontario court signed off on the plan Tuesday.
The sales can start Friday and run no later than Oct. 12 with the deep discounts happening only at the 59 department and Sears Home stores that have been slated for closure.
Sears lawyer Jeremy Dacks told the hearing to approve plan that it was “crucial” the retailer be permitted to begin sales of its merchandise, furniture, fixtures and equipment as soon as possible so it could “maximize” benefits for its stakeholders.
“It gives us certainty of recovery,” Dacks said in court.
The nearly 300-page motion was unopposed by the litany of lawyers involved in the proceedings, including those representing the company, the landlords, the monitor and current and ex-employees.
The majority of the sales will be overseen by a third-party liquidator with current employees being asked to stay on the job until the sales are complete and the locations are shut down.
Stores will be able to advertise the sales with signs that say “Everything On Sale,” “Everything Must Go,” and “Store Closing” or similar wording. However, the signs cannot say “Bankruptcy,” “Liquidation” or “Going out of Business,” according to the motion.
Sears Canada has been operating under court protection from creditors since June 22 when it announced its plan to shutter 59 stores and cut approximately 2,900 jobs.
Last week, Ontario Superior Court Judge Glenn Hainey gave the company the green light to begin the process of putting itself up for sale. He also gave the retailer approval to pay $9.2 million in retention bonuses to executives and other key employees.
The payout was part of a compromise with retired employees that will see Sears Canada continue making some benefit and pension payments to retirees until Sept. 30.
Founded in 1952, Sears Canada operates 239 locations, including department stores, Hometown stores, Home Stores, distribution centres and warehouses. It also owns 16 franchises under the Corbeil banner, a specialty major appliances chain. It said it hopes to exit court protection as soon as possible this year.
Court grants Sears Canada approval to begin liquidation sales Friday | Canada |
 
Curious Cdn
#26
Ours is still open! Now I can buy that leisure suit that I've always wanted!
 
TenPenny
#27
And, true to form, retention bonuses are being paid to keep those high-performing executives at work, while the people laid off get no severance.
 
spaminator
#28
Sears Canada liquidation sales begin at 54 locations across the country
THE CANADIAN PRESS
First posted: Friday, July 21, 2017 09:16 AM EDT | Updated: Friday, July 21, 2017 01:15 PM EDT
TORONTO — Shoppers queued up Friday in hopes of finding a deal as Sears Canada Inc. began liquidation sales at 54 locations that will be closed as part of a court-supervised restructuring that began last month.
Large red, black and yellow signs that proclaimed “everything must go” and “nothing held back” greeted bargain hunters who began lining up before the doors opened
Sears Canada says prices will be discounted by 20 to 50 per cent.
“We encourage consumers to shop early to take advantage of the best selection of products and great savings available throughout the stores while supplies last,” Gary Epstein, a spokesman for the liquidates group, said in a statement.
The sales — to be held across the country — are being run by a joint venture group including Hilco Global, Gordon Brothers, Tiger Capital Group and Great American Group.
In addition to the store merchandise, the liquidators will be selling fixtures, furnishings and equipment in the closing stores.
The liquidation sales are at 20 full-line, 15 Sears Home, 10 Outlet and nine Hometown locations in every province except Prince Edward Island.
In total, Sears plans to close 59 locations and cut about 2,900 positions before emerging from court protection.
Sears Canada has been under court protection since June 22. Under the Companies’ Creditors Arrangement Act, it’s looking for a buyer or investor while negotiating with lenders, landlords and other creditors.
Employees at the stores where the liquidation sales are taking place have been asked to stay on the job until the sales are complete and the location is shut down.
Sears Canada expects to finish the liquidation sales by Oct. 12 and hopes to complete its restructuring as soon as possible this year.
Once a retail stalwart, Sears Canada has struggled in recent years despite its efforts to adapt to the changes in the retail business.
The company has also been challenged by several changes in its executive leadership over the last four years.
Sears Canada liquidation sales begin at 54 locations across the country | Money
 
spaminator
#29
Online calls to #BoycottSearsCanada over treatment of ex-employees
Adina Bresge, THE CANADIAN PRESS
First posted: Sunday, July 23, 2017 03:06 PM EDT | Updated: Sunday, July 23, 2017 09:15 PM EDT
Sears Canada is facing a social media campaign calling for a boycott after the company said it planned to pay millions in bonuses to keep executives on board during restructuring, while not offering severance to laid-off workers.
The retailer’s Facebook page has been flooded with comments from people vowing not to shop at Sears, and the hashtag #BoycottSearsCanada has been gaining traction on Twitter.
Sears Canada, which is operating under court protection from creditors, began liquidation sales on Friday at 59 department and Sears Home stores slated for closure.
The company has said it plans to cut approximately 2,900 jobs, without severance, while paying $9.2 million in retention bonuses to key staff as part of a court-supervised restructuring process.
Sears Canada spokesman Joel Shaffer has said the payments are common during the creditor protection process and are designed to keep key employees motivated with performance indicators and incentives to successfully close stores.
The deal was met with fierce backlash from social media users, many of whom wanted the retailer to know they were taking their business elsewhere.
Sears Canada declined to comment on the boycott call.
Retail analyst Bruce Winder said Sears is up against a public relations “storm” that could spell the end of one of Canada’s most trusted brands.
“People don’t like it when big brands behave badly, in their opinion,” Winder said in an interview. “It’s a powder keg for social unrest.”
Winder, who co-founded the Retail Advisors Network, said most consumers are workers themselves and they have long memories when it comes to perceived injustice against people they see as vulnerable, such as retail workers.
He said the boycott could hurt people still working at the stores, but it may not make a difference if the retailer goes out of business.
“I don’t think (Sears) is going to survive this,” said Winder. “Unfortunately, those employees are probably going to find themselves out of work anyway.”
Dan O’Reilly, who is participating in the boycott, said he’s spent tens of thousands of dollars at Sears over the past 35 years, but has been shopping there less in recent years because he’s noticed a decline in customer service, which he said is no surprise given that the company treats its retail workers like “pieces on a game board.”
O’Reilly said he doubts that losing a once-loyal Sears customer will persuade the company to treat its ex-employees any better. The 64-year-old retiree acknowledged that the boycott may have an impact on the remaining retail staff at Sears, but said the “writing is on the wall” for the retailer, and he won’t be sad to see his local outlet in St. Catherines, Ont., shutter its doors.
Tracy Brown, who is also boycotting Sears, agreed that the campaign may do little to affect former retail workers. But even if it only hastens the inevitable, Brown said she wants to she wants to hit Sears executives where it hurts: their paycheques.
“The only kind of voice you can be heard with is what you’re not spending in their store any more,” Brown said in an interview. “My message to (Sears) is that you’ll never get another dime of my money because that dime is going right into the one-percenters’ pocket.”
Brown, a 54-year-old painter from Stratford, Ont., said driving to Toronto to see the Christmas display in the Sears storefront has been a family tradition since she was a child.
This holiday season, Brown said, she won’t be making the annual pilgrimage to Sears with her kids, because she refuses to hand over her hard-earned dollars to a company that, to her mind, rewards mismanagement at the expense of store-level workers.
Brown said the retention bonuses were “a slap in the face” to all of the retail workers who have been sweating on the front lines for years or even decades. She said the top brass at Sears Canada let the company fall into financial disarray, and they should have to pay for it.
http://twitter.com/hashtag/BoycottSearsCanada
Online calls to #BoycottSearsCanada over treatment of ex-employees | Money | Tor
 
TenPenny
#30
The biggest joke is that the liquidation sales are mostly 20% off; they have regular sales with better deals than that.


The whole thing is ridiculous, but of course the execs will get their bonuses. Because they've run the place so well.