Sears Canada says Brandon Stranzl has resigned from Board
TORONTO -- Sears Canada Inc. executive chairman Brandon Stranzl has resigned from its board of directors following court approval last week for the retailer to begin its liquidation sales.
"In light of the liquidation, his services are no longer required as executive chairman," the retailer said in a statement.
Sears Canada has been operating under court protection from creditors since June.
Stranzl had led a group that was interested in buying the retailer and turning its fortunes around.
However, no deal was reached and the company was granted approval last week to begin the process to liquidate all of its inventory and close its doors.
Sears Canada said it expects to start its liquidation sales on Thursday.
The company also said that after Wednesday it will no longer be able to honour Sears Protection Agreements to customers. Refunds will be allowed for customers who bought the extended protection agreements within the past 30 days.
Sears Canada said most merchandise it normally sells comes with a one-year manufacturer's warranty, which will be available to customers directly from the manufacturers.
It said servicing on furniture and mattresses under the Guardsman (Valspar) protection plan will continue to be honoured.
Sears Canada currently has 74 full department store locations, eight Sears Home Stores, and 49 Sears Hometown stores, which all face closure.
Justice Glenn Hainey approved a motion Friday, after being satisfied that there was no viable alternative, and extended its creditor protection until Jan. 22 to allow for the liquidation process.
Under the terms of the liquidation, Sears Canada can terminate the agreement if another potential transaction emerges, but will need to pay a break fee and expense reimbursement totalling $4.55 million.