Sears Canada Retail News: Financial Trouble May lead to Closure or Buyout

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Sears Canada May Close their Doors

Sears Canada warned Tuesday are feafrul -about closing the doors and may have to either restructure or be sold.

Sears has been trying to reinvent itself but has been having a hard time to find additional funding to do so

“Based on current assessment, cash and forecasted cash flows from operations are not expected to be sufficient  over the next 12 months,” the company said.

Stocks have now dropped by 34 cents

 

Sears has hired BMO Capital Markets as a financial adviser, and Osler, Hoskin & Harcourt LLP as a legal adviser.

The company is the latest retailer to report difficulties amid a tough environment that has seen a big push to online shopping.

Sales drop

Sears reported its first-quarter revenue dropped by 15.2 % from the same quarter last year.

Reasons claimed for the revenue drop included:

  • A “significant” reduction in printed catalogues due to lower customer demand.
  • Some products not being available online
  • A cut in the number of its merchandise pickup locations.

 

10 new-format stores are expected to be completed between June and August this year of 2017 , which would give the company a total of 14 revamped outlets by the end of its current fiscal year.

2 COMMENTS

  1. I loved shopping at sears, but now I just don’t like the layout of the stores, I would choose Sears . I love their clothes, they have great deals sometimes. But I stop shopping there because it’s so frustrating to go in and look for a dress for example and you have to look in 10 different places, because they decided the sort by brand instead of having all dresses in one area. They can still put the brand above the rack., but just keep all similar clothing/accessories together. It’s so frustrating when shopping for seasonal dress clothes for work /or for a trip and I have to do a safari hunt around the store to look at different blouses/pants/jackets/ for that reason I gave up going there. But all pants together, all tops together etc. It would make for convenient shopping for the younger groups who like to spend money, but are always in a hurry.

  2. I think their sales would be up quite a bit if they still had catalogues. The majority of our population today are seniors and most do not have computers or will not do on-line shopping so without the catalogues they are shopping elsewhere.

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