Sears Canada says it is seeking court protection

Sears Canada Inc. said Thursday it plans to close 59 locations across Canada and cut approximately 2,900 jobs under a court-supervised restructuring.

The struggling retailer, a separate, publicly traded company that was spun off from Sears Holdings in 2012, said it will close 20 full-line locations, plus 15 Sears Home stores, 10 Sears Outlet stores and 14 Sears Hometown locations.

The announcement came after the company was granted temporary court protection from creditors under Ontario's Companies' Creditors Arrangement Act this morning.

Under the plan, Sears Canada has been authorized by the Ontario Superior Court of Justice to obtain up to $450 million Canadian (US$340 million) in financing to maintain operations throughout the restructuring.

The struggling retailer has piled up losses over several years and seen its stock dive, losing more than 80 percent of its value in the last year, despite efforts to reinvent itself at a time.

"The brand reinvention work Sears Canada has begun requires a long-term effort," Sears Canada said in a statement Thursday.

"But the continued liquidity pressures facing the company as well as legacy components of its business are preventing it from making further progress."

Headquartered in Toronto, Sears Canada had 94 department stores, 23 Sears Home stores and 10 outlets prior to the CCAA restructuring.

It said it hopes to exit court protection as soon as possible in 2017.