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

[spaminator]

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]

...and the sales are not showing up with other on line merchants
the sales are not happening at all...

 

[spaminator]

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]

Sears who??

Thought they were long gone already..

I Shop Amazon

 

[justlooking]

Canada, soon to be a country of only Walmart and the Dollar store.

 

[Murphy]

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]

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]

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]

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]

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]

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]

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]

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]

and quit whining about lost severance.

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

 

[Walter]

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]

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]

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

 

[TenPenny]

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]

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]

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.