The Sears Canada bankruptcy and planned sale has sparked a flurry of legal motions from shareholders, property owners and employees.
Last week, the retailer secured approval to sell the company by an Ontario judge, with the bidding process expected to last until October 25th.
This latest development follows the department store’s bankruptcy filing last month, which was granted under Canada’s Companies’ Creditors Arrangement Act. As a part of its attempt to restructure, the retailer announced it would close 20-full-line stores, 15 Sears Home locations, 10 Sears Outlets, and 14 Sears Hometowns and cut 2,900 jobs.
[See an updated list of apparel retail bankruptcies to date: Infographic: The Accelerating Pace of Apparel Retail Bankruptcies]
FTI Consulting, the retailer’s court-approved monitor, said more than 20 parties have expressed interest in a deal for the retailer.
Among them are U.S.-based Sears Holdings CEO Edward Lampert’s ESL Partners LP and Fairholme Capital Management, which together own about two-thirds of Sears Canada stock. The two entities filed court papers last week requesting access to several internal documents related to the restructuring, including the key employee retention and store closing plans.
The filing also requests that “conflicted” members of the Sears Canada management team be excluded from selecting successful sale bids.
Reuters reports that Oxford Properties and OPGI Management Limited Partnership have filed a separate court document regarding concerns about the sale process which could affect property rights, as Sears Canada owns property that is part of Oxford’s Upper Canada Mall.
As a part of the creditor protection, Sears Canada also sought to terminate pension and health benefits for laid-off employees and retirees. It has since decided to continue payments to retirees through September 30th. Laid off employees are not receiving severance, benefits or pension, a fact that is being disputed by affected workers, according to CBC News.
Sears Canada has also filed to gain clearance for liquidation sales, which are to begin by July 21st and wrap up by October 12th. That motion is scheduled to be heard tomorrow.
François Girbaud shares with Rivet why he believes fit and function mean more to denim than ever and why he’s eager for newness.Read more
Nike launched Nike Circular Innovation Challenge, a two-part contest that challenges participants to turn grind waste materials into new products or propose innovative material-recovery solutions for footwear recycling.Read more
Nike is shifting its leadership following alleged internal conflict, J.Jill's CEO Paula Bennett is retiring, plus Hugo Boss extended its CEO contract.Read more
Adelante Shoe Co. aims to make footwear shopping more transparent by connecting craftsmen and consumers from point of sale to shoe delivery.Read more
So what's really going on with the retail apocalypse? It really depends on which retailers you're talking about, according to new research from Deloitte.Read more
Following up on its merger this month with the American Fiber Manufacturers, the National Council of Textile Organizations has launched Textiles in the News, a new website promoting the U.S. textile industry.Read more
The challenging retail environment has store executives re-evaluating every aspect of their businesses and Shop.org's “The State of Retailing Online” report highlights retailers' new directions and the areas they say still need improvement.Read more