Sears Canada Inc. is terminating its leases in five stores across the country, including its flagship Toronto Eaton Centre location, in exchange for $400 million.
Four of the stores, including the Eaton Centre location, are owned by The Cadillac Fairview Corporation Limited. The three other Ontario properties are located at Sherway Gardens, Markville Shopping Centre and London-Masonville Place. The fifth location, at the Richmond Centre in British Columbia, is co-owned by Ivanhoe Cambridge and Cadillac Fairview.
Sears will vacate the Toronto Eaton Centre, Sherway Gardens and London-Masonville stores by Feb. 28, 2014, and the Markville and Richmond stores by Feb. 28, 2015. The upper four floors of the Eaton Centre will continue to house Sears’ head office operations.
“The company will operate 111 full-line department stores after Sears vacates these five stores,” says Doug Campbell, president and CEO of Sears Canada Inc. “(Sears) continues to be a substantial retail presence across Canada, especially in suburban and mid-size markets where Sears plays a major role in the marketplace.”
This transaction follows Sears’ June announcement that it will be terminating leases for its stores at Yorkdale Shopping Centre in Toronto and Square One Shopping Centre in Mississauga. Both will be vacated by Mar. 31, 2014.
