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Report Date : |
02.12.2013 |
IDENTIFICATION DETAILS
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Name : |
SEARS CANADA, INC. |
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Formerly Known As : |
SIMPSONS-SEARS LIMITED |
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Registered Office : |
220 Yonge Street,
Toronto, Ontario M5B 2B8 |
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Country : |
Canada |
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Date of Incorporation : |
1975 |
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Legal Form : |
Public Company |
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LINE OF
BUSINESS : |
SEARS
CANADA INC. OPERATES AS A MULTI-CHANNEL RETAILER IN CANADA. THE COMPANY
OPERATES IN TWO SEGMENTS, MERCHANDISING AND REAL ESTATE JOINT VENTURE
OPERATIONS. THE MERCHANDISING SEGMENT SELLS GOODS AND SERVICES THROUGH ITS
RETAIL AND DIRECT CHANNELS. THE RETAIL CHANNEL INCLUDES DEPARTMENT STORES
SELLING APPLIANCES, HOME FURNISHINGS AND MATTRESSES, HOME DECOR, HOUSEWARES,
BED AND BATH PRODUCTS, GARDEN PRODUCTS, HARDWARE, AND ELECTRONICS; WOMEN’S,
MEN’S, AND CHILDREN’S APPAREL, AS WELL AS BEAUTY AND FRAGRANCE PRODUCTS,
JEWELRY AND WATCHES, FOOTWEAR, TOYS, SPORTS AND RECREATIONAL PRODUCTS,
FITNESS AND HEALTHCARE PRODUCTS, AND LUGGAGE; HOME IMPROVEMENT PRODUCTS AND
SERVICES; AND GIFT AND FINANCIAL SERVICES. IT ALSO OFFERS HOME SERVICES,
INCLUDING THE SALE, INSTALLATION, MAINTENANCE, AND REPAIR OF HEATING AND
COOLING EQUIPMENT, ROOFING, DOORS AND WINDOWS, FLOORING, AND WINDOW
COVERINGS; KITCHEN AND BATHROOM RENOVATIONS, HOME SECURITY, ENERGY AUDITS,
CARPET AND UPHOLSTERY CLEANING, DUCT CLEANING, AND MAID SERVICES; AND TRAVEL
AND LOGISTICS SERVICES. |
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No. of Employees : |
30,000 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
NOTES :
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31st, 2013
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Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
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Canada |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
CANADA - ECONOMIC OVERVIEW
As a high-tech industrial
society in the trillion-dollar class, Canada resembles the US in its
market-oriented economic system, pattern of production, and affluent living
standards. Since World War II, the impressive growth of the manufacturing,
mining, and service sectors has transformed the nation from a largely rural
economy into one primarily industrial and urban. The 1989 US-Canada Free Trade
Agreement (FTA) and the 1994 North American Free Trade Agreement (NAFTA) (which
includes Mexico) touched off a dramatic increase in trade and economic
integration with the US its principal trading partner. Canada enjoys a
substantial trade surplus with the US, which absorbs about three-fourths of
Canadian exports each year. Canada is the US's largest foreign supplier of
energy, including oil, gas, uranium, and electric power. Given its great
natural resources, highly skilled labor force, and modern capital plant, Canada
enjoyed solid economic growth from 1993 through 2007. Buffeted by the global
economic crisis, the economy dropped into a sharp recession in the final months
of 2008, and Ottawa posted its first fiscal deficit in 2009 after 12 years of
surplus. Canada's major banks, however, emerged from the financial crisis of
2008-09 among the strongest in the world, owing to the financial sector's
tradition of conservative lending practices and strong capitalization. Canada
achieved marginal growth in 2010-12 and plans to balance the budget by 2015. In
addition, the country's petroleum sector is rapidly becoming an even larger economic
driver with Alberta's oil sands significantly boosting Canada's proven oil
reserves, ranking the country third in the world behind Saudi Arabia and
Venezuela
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Source : CIA |
SEARS CANADA, INC.
Address: 220 Yonge Street, Toronto, Ontario M5B 2B8 - Canada
Headquarters: 220 Yonge Street, Toronto, Ontario M5B 2B8 - Canada
Telephone: 416-362-1711
Fax: 416-941-2501
Website: www.sears.ca
Corporate ID#: 3706486
State: Federal
Judicial form: Public
Company (TSX = SCC)
Date founded: 12-30-1999
Stock: 102,512,532 shares issued and
outstanding (as of 01-31-2012)
Value: -
Name of manager: Calvin McDONALD
History:
Business started in 1975.
Present Company is issue from the merger of:
- SEARS CANADA INC.
Federal ID# 3330885
- THE T. EATON COMPANY LIMITED
Federal ID# 3706478
Business:
Sears Canada Inc. operates as a multi-channel
retailer in Canada. The company operates in two segments, Merchandising and
Real Estate Joint Venture Operations. The Merchandising segment sells goods and
services through its retail and direct channels. The retail channel includes
department stores selling appliances, home furnishings and mattresses, home
decor, housewares, bed and bath products, garden products, hardware, and
electronics; women’s, men’s, and children’s apparel, as well as beauty and
fragrance products, jewelry and watches, footwear, toys, sports and
recreational products, fitness and healthcare products, and luggage; home
improvement products and services; and gift and financial services. It also
offers home services, including the sale, installation, maintenance, and repair
of heating and cooling equipment, roofing, doors and windows, flooring, and
window coverings; kitchen and bathroom renovations, home security, energy
audits, carpet and upholstery cleaning, duct cleaning, and maid services; and
travel and logistics services. The direct channel includes ordering through
telephone, mail, fax, and online at sears.ca, as well as in person through its
stores and catalogue agents.
As of May 24, 2012, the company operated 196
corporate stores, 278 hometown dealer stores, 29 home services showrooms, 1,500
catalogue and online merchandise pick-up locations, and 105 Sears Travel
offices, as well as a home maintenance, repair, and installation network.
Additionally, it has joint venture interests in 12 shopping centers in Canada.
The company was formerly known as
Simpsons-Sears Limited and changed its name to Sears Canada Inc. in May 1984.
The company was founded in 1952 and is headquartered in Toronto, Canada. Sears
Canada Inc. is a subsidiary of Sears Holdings Corporation.
Staff: 30,000
Operations & branches:
At the headquarters, we find the corporate office.
Shareholders:
SEARS HOLDING CORPORATION ...
73.1%
PERSHING SQUARE CAPITAL ... 13.3%
Management:
The Directors are the following:
William C. CROWLEY
Ephraim J. BIRD
Debi E. ROSATI
William R. HARKER
James McBurney
Calvin MCDONALD
R. Raja KHANNA
Donald Campbell ROSS
The Executive Officers include :
- Calvin McDONALD, President and Chief
Executive Officer
- Sharon DRISCOLL, CFO
Subsidiaries &
Partnership: n/a
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Annual report 2011/2012 on attachment. |
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On May 16, 2012, Sears Canada Inc. reported
unaudited consolidated earnings results for the first quarter ended April 28,
2012.
For the quarter, the company reported
revenue of CAD 915.1 million against CAD 992.5 million a year ago.
Operating loss was CAD 58.8 million against
CAD 50.9 million a year ago. Earnings before income taxes were CAD 105.5
million against loss before income taxes of CAD 55.2 million a year ago.
Net earnings were CAD 93.1 million or CAD
0.91 per basic and diluted share against net loss of CAD 47 million or CAD 0.45
per basic and diluted share a year ago.
Cash flow used for operating activities was
CAD 93.3 million against CAD 112.9 million a year ago.
Purchases of property, plant and equipment
and intangible assets were CAD 13.2 million against CAD 16.3 million a year
ago.
Operating LBITDA was CAD 30.1 million
against CAD 22.3 million a year ago.
Banks: Royal Bank of Canada
HSBC
CIBC
…
Legal filings & complaints:
As of today date, there is no legal filing
pending with the Courts.
Secured debts summary: None
According to our credit analysts, during the
last 6 months, 82% of trade experience indicates a regular payment.
Payments of imports are currently made with
an average of 15 days beyond terms.
We noted a slow-down of the business.
The Company is in good standing.
This means that all local and federal taxes were paid on due date.
The risk remains low.
Our opinion:
A business connection may be conducted.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.62.59 |
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1 |
Rs.102.05 |
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Euro |
1 |
Rs.84.97 |
INFORMATION DETAILS
|
Report Prepared
by : |
PDT |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation
is considered normal. Capable to meet normal commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NB |
New Business |
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This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.