After a financial crisis, Sears Canada has announced they will close 59 stores costing 2,900 jobs.
Closures will affect full-scale Sears stores as well as outlet locations and Sears Home shops. In total, approximately 2,900 job losses are expected.
According to the company, a timeline for closing the stores has not been finalized.
The court protection allows Sears Canada to obtain up to $450 million in financing as it restructures its business.
In a statement, the company said it needs a “long-term effort” to reinvent its brand and turn around its business.
Earlier this month, company officials warned that they did not foresee enough cash coming in to meet all of the company’s obligations over the next year.
Trading in Sears Canada stock was halted prior to Thursday’s announcement. Over the past year, shares in the company have lost more than 80 per cent of their value.
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