Your Path to Debt Freedom
In October 2017, Canadians learned they were losing a retail titan as the Sears Canada bankruptcy was announced and along with it the plan to lay off 12,000 employees across the country.
The company has been losing money for some time and has been closing stores for the past several years, but the announcement of total liquidation came as a shock to many. Seventy-four full-line stores, 49 Hometown dealer stores, and eight Sears Home Stores are set to close by the end of 2017.
Since the Sears Canada bankruptcy announcement, analysts have looked into what caused it. While there are many factors, competition, lack of forward movement, and poor fiscal management are cited as the main reasons.
Whatever the cause, the implications are clear: 12,000 people across Canada are laid off work and the country is losing a retail icon.
Additional implications are:
- Mall retailers will have to find replacement stores to fill the empty spaces Sears occupied.
- Other apparel stores, such as Winners, Hudson’s Bay, Marshall’s, and Reitman’s, could pick up more business. Home improvement stores, such as Home Depot, Home Hardware, and Lowe’s Canada could see an uptick in sales too.
If you are facing being laid off work, in the retail sector or otherwise, there are several things you can do to prepare.
- Make sure your finances are in order.
Do you have a monthly budget? How much debt do you owe? If you’re faced with a job loss, it’s important that you have a plan to keep paying your debts. A poor credit score could affect your job search and digging yourself deeper into unsustainable debt will only hurt you in the long run.
- Assess your options.
Where else might be hiring in your field? Are there other streams of income you can access, such as self-employment? What types of severances or government benefits are you entitled to and for how long? Knowing this information can help you plan ahead.
- Begin your job search now.
If you’re worried about your job security, don’t delay in starting your search or setting up another form of income. Update your resumé and think about places you could apply. If you’re in the retail industry, for example, are other stores hiring in your area? If not, how could your skills be transferrable to another industry?
- Have a plan to deal with debt.
If you owe debt, it’s best to have a plan before you’re laid off work. A Licensed Insolvency Trustee can provide you options to manage your debt so you don’t dig yourself deeper into the hole.
At Spergel, we can help you you understand your options for debt relief and better financial stability if you are facing being laid off work.
Call us today for a free consultation: 310-4321.