Sears Canada is closing three department stores in Vancouver, Calgary and Ottawa, and selling its leases back to its landlord, Cadillac Fairview—the real estate arm of the Ontario Teachers’ Pension Plan.
President and CEO Calvin McDonald said the retailer hadn’t planned to sell or close stores, but an offer from Cadillac Fairview was attractive.
Under the agreement, Sears will sell back its leases for its Pacific Centre store in Vancouver, the Chinook Centre in Calgary and the Rideau Centre in Ottawa to Cadillac Fairview for about $170 million. The sale will take place by April 20, pending usual closing conditions.
The Vancouver store, a prominent feature of the Pacific Centre, is the biggest of the three that will be shuttered, with eight floors. That location, as well as the store in Ottawa, are former Eaton’s stores that were reopened as Sears in 2000. The Calgary location has been a Sears store since 1965 and is located in the top-performing mall in the city.
The shuttered locations could be prime targets for U.S. department store chains like Target Corp., which has already announced its entry into Canada, or others that have been eyeing the scene north of the borders.
But Cadillac Fairview isn’t indicating whether it has been approached by any retailers about the space, saying it doesn’t disclose information about negotiations.