Sears Canada seeks court nod to restructure: Reuters

Sears Canada Inc on Thursday sought court approval for its restructuring efforts, two weeks after the Canadian retailer filed for creditor protection.

The company also said it would suspend some retirement benefits for its employees.

Sears Canada said it also sought court approval for a sale and investment solicitation process.

The company set October 4 as the deadline to obtain court approval of successful bids, while the company’s sale and investment solicitation process has an expected completion date of October 25.

Sears Canada sought creditor protection on June 22 after suffering a steady decline in sales due to competition from big-box retailers and online merchants.

Update: Sears Canada is controlled by U.S. hedge fund ESL Investments, which is led by Chairman and CEO Eddie Lampert.

(Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Sriraj Kalluvila)

(This story has been edited by Kirk Falconer, editor of PE Hub Canada)

Photo courtesy of Reuters/Larry Downing