Sears Canada stock plunges on news report

TORONTO — Sears Canada’s stock plunged more than 20 per cent Wednesday following a report that it’s preparing to seek court protection from creditors.

The shares (TSX:SCC) fell 22.5 per cent, or 18 cents, to 62 cents on the Toronto Stock Exchange.

The stock has been on a nosedive in the last year — losing more than 80 per cent of its value — and just last week the company warned there was “significant doubt” about its future and that it could be sold or restructured.

Sears Canada didn’t respond for comment.

Bloomberg, citing unnamed people it said were familiar with the matter, reported that the company is preparing to seek court protection from creditors within weeks and that the business could be sold off in pieces.

The Toronto-based retailer and its American counterpart have been suffering from dwindling sales for years as a result of changes to consumer buying patterns and new competition, particularly from online shopping.

In April, Sears Canada announced that its 2016-17 loss was $321 million.

Shareholders rank after lenders and creditors in a court-supervised bankruptcy proceeding, so Sears Canada shares could lose most or all of their value if it files under the Companies Creditors Arrangement Act or Bankruptcy and Insolvency Act.

According to regulatory documents, its biggest direct and indirect shareholder is billionaire Edward S. Lampert, who also controls the Sears Holding Corp. — a public company that owns Sears and Kmart stores in the United States.

Shares of Sears Holdings, which retains a minority stake in the Canadian operation, dropped more than five per cent Wednesday on the Nasdaq.

Efforts to reach hedge fund ESL Investments Inc. and Sears Holdings for comment were not successful Wednesday.

Just Posted

WATCH: Families make yo-yos and weaved yarn at Red Deer Museum and Art Gallery

It was all about making yo-yos and yarn bombing at Red Deer… Continue reading

Solve mysteries with Sherlock Holmes and Dr. Watson in Red Deer

At three sold-out one act Sherlock Holmes plays in Red Deer, theatre… Continue reading

Quebec man arrested in slaying of Alberta woman 16 years ago

AIRDRIE, Alta. — A Quebec man has been arrested in the slaying… Continue reading

Construction underway at Medicine River Wildlife Centre in Red Deer

The new building is twice the size of the old one

Fish for free

No license is required to ice fish on Family Day weekend

WATCH Replay Red Deer Feb. 18: Your weekly news highlights

Watch news from Red Deer and Central Alberta

How to keep local news visible in your Facebook feed

Facebook has changed the news feed to emphasize personal connections. You might see less news.

Trump gets angry about election meddling, but not at Russia

‘Weirdest thing’: Trump expresses anger, but not over Russian election-meddling

New doping charge could hurt Russia’s chance at reinstatement

Russia could lose its chance to be reinstated before the end of the Winter Olympics because of a doping charge against curling bronze medallist Alexander Krushelnitsky.

#Metoo movement causing confusion in many men, fear of missteps with women: experts

Being painted by the same sweeping brush as those alleged to have mistreated women has angered men

Virtue and Moir break their own world record

Virtue and Moir break short dance record to sit first in ice dance at Olympics

Calgary man dies in Mexico following sudden illness

Troy Black was with his wife, Lindsay, in Puerto Vallarta when he began vomiting blood on Thursday

Life or death main decision for school shooting suspect

FORT LAUDERDALE, Fla. — The evidence against the Florida school shooting suspect… Continue reading

Man who stole millions from Seabird Island band sentenced to 4.5 years jail

Stephen MacKinnon sentenced in Chilliwack court for stealing $2.3 million over eight years

Most Read


Five-day delivery plus unlimited digital access for $185 for 260 issues (must live in delivery area to qualify) Unlimited Digital Access 99 cents for the first four weeks and then only $15 per month Five-day delivery plus unlimited digital access for $15 a month