Sears has announced that it will be closing its’ store in Brockville.
On Thursday the company announced that it planned to cut 2,900 jobs and close 59 stores across the country. Some of the jobs lost will be coming from the Brockville store, which has been open for 30 years. The move comes after Sears Canada Group was granted protection under the Companies’ Creditors Arrangement Act (CCAA). The CCAA covers insolvency proceedings and gives Sears 30 days to restructure, with the store closings acting as part of the process.
The company plans to close: 20 full Sears stores, 14 Sears Hometown stores, 15 Sears Home Stores and all 10 outlet stores, accounting for approximately a third of all current retail locations. Also on the chopping block are 500 office jobs. Before trading was halted on Thursday stock in Sears was just 62 cents a share, compared to the $40 it traded at in 2000. The stock had also fallen to 80 per cent of its value on the TSX since the start of the year.
Leo Doucet, the Senior Property Manager at 1000 Islands Mall, says it is sad to see them closing and this is not a good thing for the shopping centre or the community. When asked about what would move into the space, he said it was too early to know, but it would likely be divided up among a number of smaller retailers.
This restructuring will not affect the Sears Canada pension plan because these assets are held separately from those of the Sears Canada Group. As such, monthly pension payments to beneficiaries of that plan will remain unaffected and continue as outlined.
Doucet also said that jobs lost by the store closing could return, it just depends which direction the mall elects to go when filling the space. Sears is yet to announce a final date for when the Brockville location will shut its doors for the last time.