Sears Canada transfers 8 home furnishing store leases to Leon's

Sears Canada will hand over the keys to eightof its Sears Home furnishing stores across the country to rival Leon's.

The deal will see no money change hands on paper, but it does allowSears to easily exit locations where it has been losing money, and allows rival Leon's which also owns The Brick to get new locations in areas where it is trying to expand.

"This transaction represents a significant opportunity for Leon's to strengthen its leading position in existing markets around the GTA as well as to enter highly desirable locations in Greater Vancouver," Leon's president and CEOEdward Leon said in a release.

Sears chair Brandon Stranzl said the chain plans to "invite all Sears Home customers to our nearest full-line department store where they can continue to shop for major appliances, mattresses, furniture, home decor, and outdoor seasonal products."

Stranzl said the transaction will make Sears "a stronger company" in the long run despite reducing its footprint across the country.

The stores are in:

• Abbotsford, B.C.
• Langley, B.C.
• Richmond, B.C.
• Victoria
• Brampton, Ont.
• Etobicoke, Ont.
• Mississauga, Ont.
• Moncton, N.B.

The first seven locations will convert to Leon's stores. The last, in Moncton, will become The Brick.

Leon's currently has no stores in British Columbia, but the new deal will see if open four stores there. The Brickhas 27 stores in the province.

Seven of the leases will change handsas of June 1, except for aBramptonlocation which will change hands on Canada Day. All of the new stores will be open by September.