Sears Canada announced that it will be selling back the leases to five of its stores, including the flagship location at the Toronto Eaton Centre. The deal, which affects the Eaton Centre, Sherway Gardens, London-Masonville, Markville Shopping Centre, and Richmond Centre locations, is worth $400 million for the retailer who is in the midst of a rebuilding phase. The leases of the stores will be sold back to Cadillac Fairview, the operator of the malls.
The struggling retailer has been closing many of its prominent stores recently, including the Yorkdale and Square One locations, in an effort to improve business. The Eaton Centre was the company’s most prominent and recognizable location in the downtown Toronto tourist area. The closing of the stores opens up the opportunity for US retailer Nordstrom and Saks Fifth Avenue to move in and purchase the Eaton Centre lease and open up a downtown Toronto location. Nordstrom has already purchased most of the previously closed Sears stores.
The Eaton Centre, Sherway Gardens, and London-Masonville locations will be closed by February 28th, 2014, and the Markville Shopping Centre and Richmond Centre will close by February 28th, 2015.