Sears Canada time running out, chairman may not have time to strike deal: monitor
Company to seek extension of creditor protection at Wednesday court hearing
The court-appointed monitor for Sears Canada is warning that its available funds are running low and there may not be enough time to reach an acceptable deal with a buyer group headed by its executive chairman, Brandon Stranzl.
In its third report to Ontario Superior Court, the monitor says Sears Canada is losing money on a weekly basis but will have enough liquidity to fund operations to Nov. 7 — subject to agreement of its restructuring lenders.
It says the Stranzl group's initial proposal to buy the business as a going concern would provide unsecured creditors with less than would sales of the Sears Canada assets piece by piece and liquidation of its remaining inventory.
The report, dated Oct. 2, says a lawyer for the Stranzl group has indicated that a revised proposal will be submitted.
It also says an extension of court protection until Nov. 7 would provide Sears Canada with more time to decide which major steps to take. The current court protection ends Wednesday.
"The Stranzl Group Proposal as currently presented may not be executable within the timeline and liquidity available to (Sears Canada)," the report says.