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Sears Canada To Close Stores In Vancouver, Calgary & Ottawa

Sears Canada Inc. is closing large stores in three Canadian cities — Vancouver, Calgary and Ottawa.

“While we had no plans to close stores, the transaction for these three specific locations provides an attractive financial benefit for the company,” president and CEO Calvin McDonald said in a statement Friday.

The retailer will get $170 million from real estate developer and landlord Cadillac Fairview Corp. Ltd. Sears will look into opening other stores in the three cities, the company said.

About 670 staff — 310 in Vancouver, 200 in Ottawa and 160 in Calgary — will be affected, a company representative said. Employees affected by the closings can apply for positions at other stores owned by the chain.

The deal is set to close by Oct. 31.

While McDonald said the deal is “very advantageous” for Sears Canada, the chain has been bracing for increased competition, including the arrival of U.S. discount giant Target in 2013.

The money-losing retailer announced price cuts on more than 5,000 items in February, and has been changing its business to boost sales.

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