canada bankruptcy
Why is court approval necessary to liquidate?
<p>I found this article in the news, claiming that <a href="http://www.cbc.ca/news/business/sears-liquidation-court-1.4347765" rel="noreferrer">Sears Canada will ask court for permission to liquidate all remaining stores</a>. I can't see why approval would be necessary. Why would it be illegal to close your own stores without approval? In what cases would it be possible for permission to be denied?</p>

<p>When a company is under <a href="http://money.cnn.com/2017/06/22/news/companies/sears-canada-bankruptcy/index.html" rel="noreferrer">court-supervised protection against creditors</a> (bankruptcy), you can't just do stuff like closing stores, as you might if you were operating free and clear. <a href="http://www.acc.com/legalresources/quickcounsel/agoocbiarl.cfm" rel="noreferrer">Here</a> is an overview of Canadian bankruptcy law. It basically comes down to the fact that they sought protection by the government against their creditors, and if you do that, the government requires you to follow broad rules (and the courts will make sure you do). </p>
