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Toronto, July 19 (Canadian-Media): Ontario Superior Court Judge Glenn Hainey, last week permitted Canadian retail chain Sears Canada, with its headquarters in Canada, to start liquidation sales from July 21 at 59 stores across the country it planned to close, media reports said.
Sears Canada's lawyer, Jeremy Dacks in the court said that it important that retailer starts selling its merchandise, furniture, and equipment soon so as to get the maximum profits for the stakeholders.
The motion in the court, which was nearly 300-page long, was unopposed by the lawyers involved in the proceedings, including company's representatives, the landlords, the monitor and current and ex-employees, CBC News reports said.
After announcing its plan to shut down 59 stores and cut approximately 2,900 jobs, Sears Canada had been protected from its creditors by operating under court protection since June 22.
Founded in 1952, Sears Canada operates in 239 locations, including department stores, Hometown stores, Home Stores, distribution centres and warehouses and also owns 16 franchises under the Corbeil banner, a specialty major appliances chain.
The plan of the chain store is to shut down 20 full Sears stores, 15 Sears Home Stores, all 10 outlet stores and 14 Sears Hometown stores, which is roughly one-third of its current retail stores.
The sales are reported to start on July 21 and would continue till Oct. 12.
Discounts would be offered only in the 59 department and Sears Home stores that have been slated for closure.
According to news report, signs permitted to be used advertise the sales in the Sears stores would be "Everything On Sale," "Everything Must Go," and "Store Closing" or similar wording while the motion prohibited signs to say "Bankruptcy," "Liquidation" or "Going out of Business."
A third-party liquidator would be responsible for the majority of the sales, said the report and current employees would remain on the job until completion of the sales and the shut down of the locations.
Hainey also approved $9.2 million to be paid by the retailer to executives and other key employees in retention bonuses, while retirees would be getting their pension payments until Sept. 30 of this year as compensation .
(Reporting by Asha Bajaj)