Spencer and Theresa Toepfer were all smiles in the summer of 2013 when they signed a deal to take over the operations of the Sears retail outlet in Osoyoos. The Toepfer’s claim two-and-a-half years of hard work has been for naught as Sears’ head office in Ontario has informed them the Osoyoos store will close for good on May 9. The Toepfers are seen with former employee Randy Kassian days after taking over the retail outlet. All current merchandise is on sale until the store closes. (Keith Lacey file photo)
Despite more than 30 months of hard work and progressively growing sales numbers, Spencer and Theresa Toepfer will soon be out of work thanks to management with Sears Canada.
After 27 years running Radio Shack and The Source in Osoyoos, the Toepfers took the plunge and decided to sell The Source store to become the new owners of the Sears Hometown Store.
Two months ago, they were informed by head office in Toronto that the company would not be renewing its lease once the current five-year lease expired in the summer of 2018.
However, the Toepfers received another phone call from head office less than two weeks ago saying Sears management had decided to close the store, effective May 9.
“Because we’ve worked so hard and turned this store around in the past two years, we were pretty upset when we found out Sears wouldn’t be renewing the lease in 2018, but at least we had more than two years to prepare for the future,” said Spencer. “Then we get another call two weeks ago telling us we have less than two months before they close the door.
“What a slap in the face. We just couldn’t believe it. It’s hard to believe that you take over a store and completely turn it around and then the management drops something like that on you. It’s pretty hard to take.”
The Toepfers sent an email to Sears Canada head office voicing how angry and disillusioned they are with the actions being taken against them.
The email reads, “We have been a dedicated Hometown Store for the past two-and-a-half years. Our sales for this time period have steadily improved with substantial increases showing year to date.
“Prior to taking over the Sears Dealer Store, we had a very successful business for 27 years in our community owning both Radio Shack and The Source. We were worried about this new venture, but we were assured … that this was a good move for us, especially recommending we sign a five-year contract.
“As I sit here, I think about all the sacrifices we have made over the past two-and-a-half years with Sears. We received notice from Sears over the phone about not renewing our lease, which expires on Aug. 23, 2018.
‘This initial notice was to the end of our lease and as difficult and trying as this would be, we felt we could continue and would sell Sears products faithfully. We then received another phone call to advise us that the notice was effective immediately to both parties. Little did we know, Sears will exercise the different clauses in the contract to terminate someone’s livelihood.”
The email further blasts Sears management and asks them “to look in the mirror and think about how you have now affected our lives. We have abided by all the rules that Sears has set out.”
He and his wife have been hugely successful in turning the Osoyoos store into a profitable business and no one at head office has told them why the contract is being terminated, he said.
He also asks, “Since we have signed a five-year contract and you made sure that we had to have a five-year lease on the premises … who is going to now be responsible for that?”
“In closing, I would like to thank you for all the restless nights” and strain caused by this decision.
“This decision is two-and-a-half years early from the contract we signed and had all intensions of fulfilling our commitment, but obviously Sears is not willing to honour.”
A divisional vice-president from Sears Canada replied to the email stating, “The decision to close your dealer store was not made lightly and was extremely difficult. However, in operating our business, it is a decision that we needed to make.
“The decision was made following a thorough examination of individual markets to see if it was viable for Sears to still operate a Hometown Store in the market. Unfortunately, as a result of our reviews, the decision was made to no longer remain in your market.”
The response further states that the Toepfers will be receiving compensation as laid out in a dealer agreement contract, but further details regarding exact amounts would be discussed after the store closes “when we will be able to calculate the compensation in accordance with the formula set out in the dealer agreement.
“Thank you for your hard work and dedication to Sears. As mentioned … these decisions are difficult, especially with passionate owners such as yourselves. I wish you the best.”
Sears has closed dozens of Hometown Store outlets in the past several years and recently closed outlets in Penticton and West Kelowna and announced the outlet in Vernon will also close in May, said Toepfer.
As far as he knows, stores in Oliver and Grand Forks will remain open for now.
The most disappointing aspect, said Theresa, is she and her husband were quite happy running a profitable electronics store and it was management from Sears that constantly pursued them to take over operation of the Sears store in Osoyoos, she said.
“They contacted us and were after us for months,” she said. “Then we finally agree to take over running their store and turn things completely around and then they do this to us. It’s really sad actually.”
Spencer has much harsher words for the company.
“It’s obvious why Sears is in such trouble as a company,” he said. “When you treat people like they’ve treated us, you just can’t stay in business. I just don’t see Sears being around much longer.”
The only good news, says Spencer, is they didn’t have to invest a significant amount of their own money to take over running the store more than two years ago.
They also have many good friends in and around Osoyoos who appreciate how hard he and his wife have worked for the past 30 years and they are looking at a couple of offers to manage another retail outlet once the Sears store closes on May 9.
To get rid of the existing inventory, all in-store merchandise has been discounted by 25 per cent starting this Monday, he said. That will increase to 30 per cent effective April 7 and will rise to 40 per cent between April 21 and the last day of business on May 9.
KEITH LACEY
Osoyoos Times
