Brick & Mortar Meltdown: Sears Canada Hires Bankruptcy Advisor

The firm represents Target Canada in its insolvency proceedings. The shares of Toronto-based Sears Canada plunged as much as 50% early today, from very little to even less, to C$0.50 at the low point before recovering some and ending down 24% for the day at C$0.87, on its bumpy ride to zero.
The company announced in its first quarter results that there are ‘material uncertainties’ about its ‘ability to continue to satisfy its obligations,’ that it has doubts about its ability ‘to continue as a going concern,’ and that lenders weren’t willing to keep it afloat for the next 12 months.
It further announced that it hired one of Canada’s leading bankruptcy and insolvency advisory practices – the same law firm that is representing Target Canada in its insolvency proceedings.

This post was published at Wolf Street on Jun 13, 2017.