Sears Canada announced it will be closing their store at Bower Place in Red Deer. (Photo by Jeff Stokoe/Advocate staff)

Sears Canada looks to suspend benefits for retirees

Amid restructuring, the company cites cash restraints for sought suspension

Sears Canada is seeking court approval to suspend certain monthly payments to its retirement plan, post-retirement health plan and life insurance premiums.

In an announcement Thursday, the company said it filed the motion with the Ontario Superior Court of Justice – about two weeks after being approved for creditor protection as it undergoes a company restructuring.

RELATED: Sears Canada closing 59 of its stores across Canada

Sears said it is looking to suspend the payments due to ongoing cash constraints. The company secured $450 million from creditors, but the agreed upon budget does not include the three retirement packages, which add to a total of more than $4.5 million per month.

The restructuring hasn’t affected monthly pension payments to the retirement plan’s beneficiaries. Sears recently said it would not be able to provide severance packages for the 2,900 employees laid off.

The retailer will be in court on July 13, asking to extend court protection from creditors to Oct. 4, and seeking approval to start soliciting investors who might be interested in buying or investing in the Sears Canada Group.

With files from The Canadian Press.


@ashwadhwani
ashley.wadhwani@bpdigital.ca

Like us on Facebook and follow us on Twitter.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

COVID-19: City of Vernon follows provincial, federal directives

‘We do this to keep you safe,’ mayor says

City of Vernon encourages safe Easter long weekend amid COVID-19

‘This is the time we need to celebrate each other,’ Vernon Mayor says

RCMP probe sudden death of Lumby child

8 year old flown to Kelowna General Hospital and died hours later

Pink supermoon lights up night sky in North Okanagan-Shuswap

Largest and brightest full moon of the year was most visible on April 7

Canadians awake to extra COVID-19 emergency benefit money, fear it’s a mistake

The CRA and federal officials are working to clarify the confusion around payments

COVID-19: B.C. students describe life during pandemic

Most teens wonder what the future will be like after COVID-19

Easter Bunny added to B.C.’s list of essential workers

Premier John Horgan authorizes bunny to spread “eggs-ellent cheer” throughout province

COVID-19 self-isolation plan or quarantine, returning B.C. residents told

Premier John Horgan says forms must be filled out by travellers

More than 400 animals have been adopted amid pandemic: B.C. SPCA

People are taking this time of social distancing to find a loyal companion through the animal welfare group

Appointments available at Summerland after hours clinic

Telephone and video communications will be provided during COVID-19 pandemic

Fire on evening of April 7 reported near Pyramid Provincial Park

A small wildfire near Pyramid Provincial Park south of Summerland is under… Continue reading

Most Read