Trading of Sears Canada shares was halted on Thursday as the company filed for creditor protection.
Sears Canada is asking for court protection from its creditors while it restructures and continues operating as a stronger retailer.
Sears Canada Seeks Creditor Protection to Pursue Restructuring Plan $SRSC pic.twitter.com/c19FBNCtDS
— Baz Hiralal (@_BizBaz) June 22, 2017
The company applied for the protection through the Ontario Superior Court of Justice under the Companies’ Creditors Arrangement Act.
In a statement, Sears Canada said that it has embarked on a reinvention plan over the past 18 months that is starting to gain traction with customers.
“The company's hard work to bring its vision to reality is reflected in reported growth in same store sales in its two most recently completed quarters,” said the company’s statement. “Sears Canada believes this indicates that the new brand positioning is starting to resonate with consumers.”
Sears Canada’s stock price on the Toronto Stock Exchange fell nearly 20 cents on Wednesday, from 80 cents to 62 cents, continuing the trend we’ve seen over the last few weeks.
On this date last year, Sears Canada’s stock sat at $3.90 per share and even went over $4.00 per share in July 2016 before starting a downwards trend.
This next step for Sears Canada will likely see a number of locations close while the company revamps a number of other stores.
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