Sears Canada Inc. (TSX:SCC) is closing five of its stores across Canada, including the Richmond Centre location, the department store chain announced October 29.
The closures will affect 159 workers in Richmond and almost 1,000 workers across the company in total. Sears is terminating its leases in all five locations, in a move that will earn the company $400 million.
Sears' Richmond Centre store has been in operation since 1989 and is co-owned by Ivanhoe Cambridge and Cadillac Fairview. The other four locations on the chopping block – Toronto Eaton Centre, Markville Shopping Centre, Sherway Gardens and London-Masonville Place – are all located in Ontario and are owned by Cadillac Fairview.
"When proposals such as this one are presented to us, we must weigh the value of the transaction against the value we will obtain from continuing to operate those stores in their current locations," said Doug Campbell, president and chief executive officer for Sears Canada.
"In this case, we were presented with an opportunity that gives us a significant financial benefit without changing our plans to improve the business and make Sears more relevant to Canadians."
The Richmond and Markville locations will be vacated by February 28, 2015. The Toronto Eaton Centre, Sherwood Gardons and London-Masonville stores will be closed by February 28, 2014.
The five stores have 965 staff members in total.
