Headlines

Canada Won't Get its Vitamins

Sears ends in-store shop deal with troubled health and nutrition partner

Published

22 years ago

June 25, 2002

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Sears Canada (Toronto) has terminated its licensing deal with Cetalon Corp. (Irvine, Calif.), the company that had been operating Sears Health & Nutrition shops in 37 Sears stores.

Financially troubled Cetalon has been causing the retailer concern for several months. It missed deliveries earlier this year, then found another nutritional products supplier. Cetalon dismissed its auditors, its ceo resigned and the company stopped paying its employees six weeks ago. When the employees stopped going to work, Cetalon was forced to start closing most of its in-store shops. Of the 37 (averaging about 700 square feet), 28 are already closed, six are on reduced hours and three — while operating normally — will be closed shortly, according to a Sears Canada spokesperson.

Cetalon also currently runs nutrition shops at 10 U.S. stores of Sears Roebuck (Hoffman Estates, Ill.).

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