In a bid to raise capital for its planned reorganization, Sears Canada is pushing for sale of its real estate assets including warehouses.
Sears Canada is going full steam on its plans to put various properties on the market in an effort to raise new capital for its restructuring. According to CBC News, the company already sold its Vaughan distribution center in Ontario for $100 million and it has also closed a deal on another one which reports say is most likely the one in Regina including an undeveloped property to the tune of $28 million. Sears executive Brandon G. Stranzl said the properties that were sold are considered "non-core" assets which the company believes can be converted into something more valuable for Sears when monetized.
It is not just disposal of properties to acquire cash that Sears is doing but it has also agreed to rent back from Tamworth Properties Inc. the Vaughan distribution center which is reportedly a long-term contract. Another center also has been sold for $8.5 million but still remained unnamed which one as of press time.
In a report by the Financial Post, the finances of Sears Canada has taken a hit over the last few years as their retail revenue has been drastically reduced, leading them to downsize their operations and to draw overhaul plans of the company from the ground up.
Stranzl outlined how the company plans to reinvigorate its brand and he said Sears Canada has taken careful steps to implement its real estate strategy. He cites that they are taking a proactive approach to it. He added that the sale of all these assets will help them re-establish Sears Canada as a major retail force in the market once again. It was also mentioned that despite the effort of Sears Canada to dispose many of its key assets, they still have a sizable number of stores in major cities.
