Sears Canada says it regrets the pending outcome and the resulting loss of jobs and store closures.
Last week, Sears received a revised bid from a buyer group led by its executive chair Brandon Stranzl to buy the business.
"Following exhaustive efforts, no viable transaction for the company to continue as a going concern was received", according to a Sears Canada press release.
The chain now has 74 full-line locations, eight Sears Home Stores, and roughly 49 Sears Hometown stores, spokesperson Joel Shaffer said. "We love Sears", she said.
The retailer now has approximately 12,000 employees, three-quarters of which are part-time, Shaffer added.
If the court gives Sears the go ahead, the retailer will start liquidation sales at its locations on or after October 19. Lawyers representing employees and the company pension plan said they're looking for alternatives to liquidation that could maintain the business as a going concern.
The Sears store in its Medicine Hat Mall was one of the first scheduled for closure when the department store company filed for protection earlier this year.
For awhile now, people have been speculating that Sears Canada was doomed.
It's been a rough year for the retailer. More information on the process is expected in the coming days.
Winder added that the Canadian retail landscape is much smaller now, making it tougher for the thousands of Sears Canada employees to find new jobs of similar calibre.