Sears Canada is closing its flagship location in Toronto’s Eaton Centre, as well as four other stores including Richmond Centre, in a move that will affect almost 1,000 employees.
The retailer says it’s selling the leases on five department stores, in a $400 million deal that amounts to the largest sale of leases since Sears (TSX:SCC) began shedding assets and cutting jobs in an effort to turn around its struggling operations.
The sale is especially notable because the Eaton Centre is one of the company’s most visible Canadian stores, located in a central tourist area.
About 965 employees across the company’s operations will affected by the move. Sears Canada says employees who are laid off from closing stores can apply for other jobs within the company.
