Sears Canada Announces Return Of Three Stores To Landlord
Vancouver Pacific Centre, Calgary Chinook Centre and Ottawa Rideau Centre
TORONTO, March 2, 2012 /PRNewswire/ - Sears Canada Inc. (TSX: SCC) announced today that it will return to commercial real estate developer and landlord, The Cadillac Fairview Corporation Limited ( Cadillac Fairview) three stores within shopping centres the developer owns and manages, for a total consideration of $170 million. The agreement is definitive and only subject to customary closing conditions. The transaction is expected to close on or around April 20, 2012.
The three Sears store locations are Vancouver Pacific Centre, Calgary Chinook Centre and Ottawa Rideau Centre. Sears plans to exit all three locations by October 31, 2012.
The associates whose employment could be potentially impacted by this transaction will have the opportunity to apply for positions for which they are qualified in nearby Sears locations which could become available between now and October 31. The Company will explore the possibility of operating other Sears stores in these areas."Overall, this is a very advantageous agreement for Sears Canada," said Calvin McDonald, President and Chief Executive Officer, Sears Canada Inc. "While we had no plans to close stores, the transaction for these three specific locations provides an attractive financial benefit for the Company which strategically allows us to drive growth in areas which can be most beneficial. We are investing in a refresh of our stores and piloting new formats which will provide Canadians exciting ways to access Sears products and services. This is an opportunity for Sears Canada that fits well with our vision and where our strengths are as a retailer." "Sears continues to execute its transformation strategy and remains focused on growing the business," continued Mr. McDonald. "We will continue to unveil new customer-focused strategies and events that demonstrate our resolve in being top of mind for shoppers across the country."
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