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Published
Mar 22, 2017
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Sears Canada still fighting

Published
Mar 22, 2017

Department store operator Sears Canada Inc is still fighting to remain a viable retail player despite years of financial pressure. The struggling retailer announced on Tuesday that it has entered into a Credit Agreement with KKR Capital Markets LLC and GACP Finance Co., LLC for a five-year secured term loan of up to $300 million.
 
The loan will be for “general corporate purposes”, Sears Canada said in a news statement.
 
The loan will be available in two tranches where the first tranche of $125 million was drawn on Tuesday, while the second delayed-draw tranche of up to an additional $175 million may be drawn at the Corporation's option.
 

Sears Canada has entered into a Credit Agreement for a five-year secured term loan of up to $300 million. - Sears


Sears Canada has one the most extensive retail networks in the country, including 140 corporate stores, 71 Hometown stores, more than 900 online merchandise pick-up locations, and a nationwide repair and service network. The retailer however, has been struggling for years. In its last reported quarter, the Toronto company reported losses of $120 million, while sales dropped 21 percent.
 
Still the retailer, which has been in Canada since 1953, has been driving strategic initiatives to reinvigorate the brand across all lines of business. Strategic initiatives include a new and more modern logo design and the launch of new Sears 2.0 concept stores, unveiled last summer.

Earlier this year, the retailer also announced the opening of two new business service centers in New Brunswick, which are opening in hopes of improving Sears Canada's overall customer service.
 
"We are now in a process of constant innovation to deliver better products and experiences to customers, and thereby drive better business results over time," says Brandon G. Stranzl, Executive Chairman, Sears Canada Inc., in a news statement for their last quarterly report. "We have much work to do and are fully committed to driving necessary change. We have adopted new principles of culture that are being embedded throughout the organization and we are thinking and acting differently than a year ago."

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