Sears Canada CEO steps down as retailer braces itself for brankruptcy
Sears Canada might have to brace itself for a possible bankruptcy.
Sears Canada is facing the possibility of bankruptcy, with the department store chain searching for restructuring advisers in what looks like a Chapter 11 filing.
However, it is not one hundred percent certain whether bankruptcy is imminent, or even definite for that matter.
The chain has enough inventory to last the holiday season (at least). Over the past six years the chain has seen a decline in sales. However, Eddie Lampert, who has a 51 percent equity stake in the company, has not given up on the company yet.
Someone familiar with the matter has said that a Canadian bankruptcy law firm got an inquiry from Sears Canada about being retained.
On Thursday the company said that Douglas Campbell will be stepping down as CEO of Sears Canada so that he tend to personal family issues in the US. He will continue as CEO until a replacement is announced (no later than Jan 1, 2015 though).
Sears Canada issued a statement, which said that it “remains committed to continue the strategy of optimizing productivity, realizing value from desirable assets and creating a highly relevant retailer in Canada with a focus on rural and suburban locations.”
William Crowley, chairman of Sears Canada, said:
“Doug brought a focus on creating value for shareholders while taking the cost efficiency and investment steps necessary to produce a viable and profitable Canadian retailer.”
Sears Canada recently said that it lost around $1 billion in the first six months of 2014. Gary Balter, a Credit Suisse analyst, said that the company is approaching “the end.”