Like other major department stores, Sears Canada was the victim of changing consumer habits as well as increased competition from online merchants and United States discount retailers entering the Canadian market.
The company plans to start liquidation sales no later than October 19 and expects them to continue for 10 to 14 weeks.
The news follows weeks of Sears Canada creditors negotiating with a group of senior executives, including executive chairman Brandon Stranzl, to buy the company.
Sears said in a statement on September 29 it was still working with Stranzl to find a workable deal.
The company is now looking to shutter all its remaining stores, which would include 74 full-line stores, eight Sears Home Stores and 49 Hometown Stores. In June, Sears announced that it would close 59 stores.
Sarnia's Sears store, located at the Lambton Mall, has 92 part time and 16 full time employees on staff.
About 12,000 Sears Canada employees will be out of a job in the coming months after the retailer failed to secure a successful bid for the struggling department store chain.
Litigators for a group of lenders who have provided debtor-in-possession financing to Sears Canada to keep it afloat pushed for a liquidation agreement to be entered into by October 7 at the latest.
Sears in Canada had grown out of a partnership between the Chicago retailer and rival Simpsons in Toronto.