[URBAN NOTE] "Sears Canada to close two, possibly three, Toronto area stores"

[rfmcdonald]

This news about Sears Canada, reported by the Toronto Star's Francine Kopun, is unsurprising. All that can be said, really, is that this department store has been somewhat more nimble than the now-defunct Eaton's.

Sears Canada is not exiting the Canadian market, said president and Chief Executive Officer Calvin McDonald, after announcing that two more stores will be closed next March, at Yorkdale Mall and Square One in Mississauga. The location at Scarborough Town Centre might also be closed.

“This is not Sears giving up and leaving Canada. We’re still the largest department store in the country,” said McDonald.

The deal with Oxford Properties Group is worth $191 million. In addition, Oxford Properties paid $1 million for an option to buy out the Sears lease at Scarborough Town Centre for a fixed price of $53-million. It has five years to exercise the option.

The 657 employees at the Yorkdale and Square One locations, full time and part time, will be offered work at other local Sears locations, said McDonald.

The news pushed Sears Canada stock to its biggest gain in more than a year, according to Bloomberg, rising 12 per cent to $10.60 at 11:22 a.m.

Last year, Sears Canada returned three leases to mall owner Cadillac Fairview, giving up prime locations at malls in Ottawa, Vancouver and Calgary for $171-million. It later sold back another lease at the Deerfoot Mall in Calgary.