Sears Canada shares plunge on rumours of bankruptcy

Shares of Sears Canada (TSX:SCC) fell 22.50 per cent, or 18 cents, to 62 cents on the Toronto Stock Exchange at market close today.

The stock has been on a nosedive in the last year — losing more than 80 per cent of its value — and just last week the company warned there was “significant doubt” about its future and that it could be sold or restructured.

Sears Canada didn’t immediately respond for comment.

Bloomberg, citing unnamed people it said were familiar with the matter, reported that the company is preparing to seek court protection from creditors within weeks and that the business could be sold off in pieces.

According to regulatory documents, its biggest direct and indirect shareholder is billionaire Edward S. Lampert, who also controls the Sears Holding Corp. — a public company that owns Sears and Kmart stores in the United States.