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Report No. : |
305988 |
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Report Date : |
05.02.2015 |
IDENTIFICATION DETAILS
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Name : |
SEARS CANADA, INC. |
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Registered Office : |
290 Yonge Street,
Toronto, Ontario M5B 2B8 |
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Country : |
Canada |
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Date of Incorporation : |
30.12.1999 |
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Legal Form : |
Public Company (TSX = SCC) |
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Line of Business : |
Subject operates department stores that offer women’s apparel, men’s and
children’s apparel, nursery products, cosmetics, jewelry, and footwear, and
accessories; and home and hardlines, including home furnishings and
mattresses, home decors, lawn and garden products, hardware products,
electronics and leisure products, and seasonal products, as well as provides
appliances comprising refrigeration, laundry, ranges, floor care, and sewing
products |
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No. of Employee : |
20,000 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
Slow but correct |
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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 – December 31, 2014
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Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
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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 high 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 merchandise exports each year. Canada is the US's largest foreign supplier of energy, including oil, gas, uranium, and electric power. Given its abundant 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 2010-13 and plans to balance the budget by 2015. In addition, the country's petroleum sector is rapidly expanding, because Alberta's oil sands significantly boosted Canada's proven oil reserves. Canada now ranks third in the world in proved oil reserves behind Saudi Arabia and Venezuela.
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Source
: CIA |
SEARS CANADA, INC.
Headquarters: 290 Yonge Street, Toronto, Ontario M5B 2B8 - Canada
Telephone: +1
416-362-1711
Fax: +1 416-941-2501
Website: www.sears.ca
Corporate ID#: 3706486
State: Federal
Judicial form: Public Company (TSX = SCC)
Date incorporated: 12-30-1999
Date founded: 1952
Stock: 101,877,662
shares issued and outstanding
(as
of 02-04-2015)
Market capitalization: CAD
1,239,851,149= (as of 02-04-2015)
Name of manager: Ronald
D. BOIRE
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 department stores that offer women’s apparel, men’s
and children’s apparel, nursery products, cosmetics, jewelry, and footwear, and
accessories; and home and hardlines, including home furnishings and mattresses,
home decors, lawn and garden products, hardware products, electronics and
leisure products, and seasonal products, as well as provides appliances
comprising refrigeration, laundry, ranges, floor care, and sewing products. It
also operates home stores, which offer appliances and electronics; and home
improvement products and services.
In addition, the company operates dealer stores that offer appliances,
furniture, home electronics, and outdoor power equipment; outlet stores that
offer clearance merchandise; appliances and mattresses stores that provide
appliances, mattresses, box-springs, and products of private labels; and a
chain of appliance specialty stores under the Corbeil name. Further, it offers
various home services, such as the sale, installation, maintenance, and repair
of heating and cooling equipment, roofing, doors and windows, flooring, window
coverings, energy audits, kitchen and bathroom renovations, carpet and
upholstery cleaning, and duct cleaning; and travel and logistics services. The
company offers its products directly through telephone, mail, fax, and online
at sears.ca, as well as through its stores and catalogue agents.
As of June 14, 2013, it operated 181 corporate stores, 248 Hometown
stores, approximately 1,400 catalogue and online merchandise pick-up locations,
and 101 Sears Travel offices, as well as a nationwide home maintenance, repair,
and installation network.
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,
Ontario. Sears Canada Inc. is a subsidiary of Sears Canada Holdings
Corporation.
Staff: 20,000
Operations & branches:
At the headquarters, we
find the corporate office.
The Company maintains
several branches in Canada including a store located:
3001 Thimens Blvd
Saint Laurent, Quebec H4R 1X7
Shareholders:
SEARS CANADA HOLDING
CORPORATION
3711 Kennett Pike, Greenville, DE 19807 – USA
SHLD ACQUISITION CORP.
1959-900 St Upper Water, Halifax NS B3J 3N2 - CANADA
CEDE AND CO
BOX 20, Bowling Green Station, New York, NY 10274 – USA
Management:
Ronald D. BOIRE is the President and CEO, since 01-26-2015.
Mr. Boire has served as the Company's acting president and CEO since
October 15, 2014.
Prior to his role with Sears Canada, Mr. Boire was Executive Vice
President, Chief Merchandising Officer and President, Sears and Kmart Formats,
Sears Holdings Corporation in Hoffman Estates, Illinois.
Prior to joining Sears Holdings in January, 2012, Mr. Boire was
President and CEO at Brookstone, Inc., a position he held from October,
2009.
Mr. Boire joined Toys R Us in 2006 eventually becoming President, North
America. From 2003 to 2006, he served as Best Buy's Executive Vice
President, Global Merchandise Manager and before that spent 17 years at Sony
Electronics Inc. in a variety of increasingly senior roles.
Mr. Boire has MBAs from the Columbia Business School and the London
Business School.
E.J. BIRD is Executive Vice President and CFO
Directors include William C. CROWLEY, R. Raja KHANNA, Debi E. ROSATI,
William R. HARKER, James McBURNEY, Sam Jeffrey STOLLENWERK,
Danita STEVENSON, Timothy FLEMMING, and Klaudio LESHNJANI.
On attachment:
- 10K 2013
- 3rd 10Q 2014
On November 18, 2014, Sears Canada Inc. reported unaudited consolidated
earnings results for third quarter and nine months ended November 1, 2014.
For the quarter, the company’s total revenues were CAD 834.5 million
compared to CAD 982.3 million a year ago. Same store sales decreased by 9.5%.
The balance of the decrease in Revenue was primarily attributable to revenues
from stores closed as a result of early termination and amendment of certain
full-line store leases and the sale of certain joint arrangement interests in Fiscal
2013. Operating loss was CAD 88.7 million against CAD 63.3 million a year ago.
Loss before income tax was CAD 75.0 million against CAD 65.5 million a year
ago. Net loss was CAD 118.7 million or CAD 1.16 per share compared to a net
loss of CAD 48.8 million or CAD 0.48 per share for the third quarter of last
year. Cash used in operations was CAD 54.6 million against CAD 64.5 million a
year ago. Purchases of property, plant and equipment and intangible assets were
CAD 14.4 million against CAD 13.4 million a year ago. Adjusted EBITDA was a
loss of CAD 19.4 million compared to adjusted EBITDA of CAD 7.3 million for the
third quarter of last year.
For the nine months, the company’s revenue was CAD 2,452.0 million
against CAD 2,809.5 million a year ago. Operating loss was CAD 252.6 million
against CAD 110.1 million a year ago. Loss before income tax was CAD 210.6
million against profit before income tax of CAD 69.1 million a year ago. Net
loss was CAD 215.2 million or CAD 2.11 per share compared to net earnings of
CAD 72.8 million or CAD 0.71 per share for the same period of last year. Cash
used in operations was CAD 307.7 million against CAD 152.3 million a year ago.
Purchases of property, plant and equipment and intangible assets were
CAD 34.9 million against CAD 31.5 million a year ago. Adjusted EBITDA was a
loss of CAD 93.6 million compared to adjusted EBITDA of CAD 17.7 million for
the same period last year. For the quarter, the company pre-tax impairment
charges of CAD 44.4 million, compared to pre-tax impairment charges of CAD 22.6
million for the third quarter of last year.
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
Trade references:
Date reported: January 2015
High credit: CAD 50,000
Now owing: 0
Past due: 0
Last purchase: December 2014
Line of business: Office supply
Paying status: 8 days beyond terms
Date reported: January 2015
High credit: USD 25,000,000
Now owing: 0
Past due: 0
Last purchase: December 2014
Line of business: Payroll
Paying status: As agreed
Date reported: January 2015
High credit: USD 5,000
Now owing: 0
Past due: 0
Last purchase: December 2014
Line of business: Telecommunications
Paying status: 8 days beyond terms
Domestic credit history:
National Credit Bureaus
gave a medium credit rating.
According to our credit analysts, during the last 6 months, domestic payments
were made with an average of 5 to 10 days beyond terms.
International
credit history:
Payments of imports are currently made with an average of 2 to 5 days
beyond terms.
Other comments:
We noted a slow-down in
business since 2010.
The bank confirmed late
payments.
The Company is in good
standing.
This means that all local
and federal taxes were paid on due date.
Last report was filed on
November 4, 2014.
The risk is medium.
Our opinion:
A business connection may
be conducted but we suggest you to check regularly the way of payments.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.61.68 |
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1 |
Rs.93.53 |
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Euro |
1 |
Rs.70.75 |
INFORMATION DETAILS
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Analysis Done by
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DIV |
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Report Prepared
by : |
ANK |
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.