Sears Canada has applied to the bankruptcy courts to close 11 more stores, including those in Hamilton and Oakville.
The liquidation of the first 59 stores is almost over and in its next phase, from tomorrow until November 7th, Sears wants to close 10 more full stores and one more home store.
Marvin Ryder from DeGroote School of Business says that if Sears closes these last 11 stores, there will be nothing profitable left.
“If by November 7th there’s no one coming to buy it, it could be the end of the company. That’s how serious this is getting.”
At Queen’s Park, Hamilton MPP Paul Miller has been lobbying for better security for pensioners under bankruptcy laws. The Sears Canada pension is currently underfunded.
“They’re using CCAA to hide behind it for restructuring to save money and take the money off the working people.”
His Federal NDP colleague Scott Duvall is introducing a bill that would make employees secured creditors under bankruptcy law, but Marvin Ryder says that strategy could backfire.
“If you made it harder for companies to get credit to continue to grow and thrive, you’re actually signalling the death knell for that company even faster.”
If Sears is given the nod in court tomorrow, 1200 more employees would lose their jobs after liquidation.