You are using an older browser version. Please use a supported version for the best MSN experience.

Sears Canada Closing All Stores, Laying Off All Employees

InvestorPlace logo InvestorPlace 10/10/2017 Karl Utermohlen
A closed Sears Canada location in Toronto.© Carlos Osorio/Toronto Star/Getty Images A closed Sears Canada location in Toronto.

Sears Canada — owned by Sears Holdings (SHLD) — announced the company is shuttering all its stores and laying off all employees.

The move comes following a number of years of declining sales happening north of the border that has seen the retailer’s foot traffic decline as more shoppers turn to buying apparel from e-commerce outlets. A total of 12,000 Sears workers will lose their jobs over the coming months.

The chain attempted to resurrect its Canada business through a bid by executive chairman Brandon Stranzl, but was forced into closure after failing to amass the necessary funds to revitalize the store. The first closures will take place at the head office near Dundas Square.

Click here to see the latest share price for SHLD

About 800 employees are located in this location and they will be let go next week. Liquidation sales will follow soon after, kicking off on Thursday, Oct. 19 and lasting anywhere from 10 to 14 weeks.

“Following exhaustive efforts, no viable transaction for the company to continue as a going concern was received,” according to a press release from the company issued Tuesday.

“The Company deeply regrets this pending outcome and the resulting loss of jobs and store closures.” Stranzl was not available for comment on Tuesday. His deal would’ve saved thousands of jobs.

Sears has already shuttered 59 stores as part of the closure, while 11 others will be shut down soon.

SHLD stock fell 5.4% Tuesday.

Related video: Sears lands $100 million loan from its CEO's hedge fund ahead of the holidays (provided by CNBC)


More from InvestorPlace

image beaconimage beaconimage beacon