Sears Canada has until Oct. 13 to assess a revised bid from a buyer group led by its executive chairman or face liquidation in the coming weeks.
The retailer is in Ontario Superior Court in Toronto to ask for an extension of creditor protection, until Nov. 7, and get approval for a handful of transactions including the sale of some subsidiaries.
The lawyer for the retailer's court-appointed monitor FTI Consulting Canada told the court Wednesday it is assessing a revised bid from a group led by Brandon Stranzl, but Sears Canada is running out of time and money to decide.
According to an amendment submitted Tuesday to an agreement with lenders providing the retailer with debtor-in-possession financing, the retailer must sign a liquidation agreement by Oct. 7 revised bid notwithstanding _ and attain court approval by Oct. 13, or risk a default.
A process to then liquidate the remaining Sears locations could start as soon as Oct. 19.
A lawyer for the lenders argued that if a proposal to buy the business as a going concern does not materialize, it is key to liquidate before the Christmas season is over to maximize the value the process can attain.