Please note this an Archived Article from 2017 – The information in this article may no longer be up to date.
Even after the closure of Nipawin’s Sears outlet, many area residents have continued to shop online or at Sears locations in Prince Albert or other cities. Recently a rumour on social media is warning those holding Sears Gift cards to use them as they will be expiring, in some instances as early as this week. In a statement to Nipawin News, a Sears spokesperson assured us that not only will they not expire, but as local stores close customers will still be able to use the cards for online shopping. Sears stores are closing individually but Sears is moving it’s business to online as part of a restructuring plan.
Some misconceptions may have arisen from closing dates of each store. Customer’s may have misinterpreted upcoming closing dates as a final date for use of their cards. According to the Sears spokesperson, when asked about store closures, “..they are closing individually, not all stores are closing together. We are moving our business online so it will take some time for the process.”
In a press release dated October 16, 2017 Sears Canada provided information on gift cards, warranties, refunds, services, delivery and repairs.
Warranties, After October 18, Sears will no longer be in a position to honour Sears Protection Agreements to customers. Most merchandise normally sold by Sears comes with a one-year manufacturer’s warranty, which will be available to customers directly from the manufacturers as is presently the case.
Refunds on protection agreements will be allowed to customers that have purchased them within the past 30 days per normal procedures.
Servicing on furniture and mattresses under the Guardsman (Valspar) protection plan will continue to be honoured in accordance with the protection plan documentation provided to customers at time of purchase.
Delivery service will continue to be available until November 30, 2017.
Gift Cards, The Company will continue to accept Sears gift cards and redeem Sears Club Points during the liquidation period. During the liquidation period, all sales will be final and not returnable or exchangeable.
Repairs, Sears continues to seek a purchaser for the Sears Canada Product Repair Services (PRS) business but the terms upon which an acquirer of that business would provide services to Sears customers are not known at this time.
Sears Canada is has been granted CCAA protection. The CCAA, or the Companies’ Creditors Arrangement Act, is a federal law in Canada that provides insolvent companies with debts in excess of $5 million an orderly and supervised means to restructure their businesses. While a company filing for CCAA is insolvent, the company is not considered to be bankrupt. In Canada, ‘bankruptcy’ refers to proceedings commenced under the Bankruptcy and Insolvency Act, which is different than the CCAA. In fact, the Stay of Proceedings under the CCAA prevents creditors from forcing the company into bankruptcy. For this reason, CCAA is sometimes referred to as ‘Bankruptcy Protection’. As of the time of this article publication, the Stay of Proceedings has been extended to January 22nd, 2018 which means customers planning to shop online for Christmas do not have to be concerned with creditors pushing Sears into bankruptcy prior to that date.