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

Vernon beer baseball league expanding

Okanagan Spring League announces early-bird registration drive; adding new team from Kelowna

Vernon Vipers thump Merritt

BCHL: Win moves Vipers to within a point of third-place Wenatchee

Vernon basketball product’s college career ends in loss

Michael Rouault scores 23 points for TRU but team falls; sister’s squad also eliminated

Vernon Vipers entertain Merritt in Monday afternoon tilt

Vipers sit in fourth place in BCHL Interior Division, three points behind Wenatchee

Vernon Winter Carnival 60s theme a hit with residents

Milestone 60th anniversary Carnival wrapped up Sunday

Kelowna’s Family YMCA opens doors on Family Day

The entire day was free for the community

LETTER: Sick of narrow-minded response to homelessness in Vernon

Give Your Head A Shake, Vernon I have been reading lots of… Continue reading

Canucks acquire forward Tyler Toffoli from Kings in push for playoffs

Vancouver sends Schaller, Madden, pick to L.A.

South Okanagan woman reflects on prestigious win at Westminster dog show

“Polly” the Scottish deerhound was crowned best in breed and reserve best hound.

RCMP report woman arrested after ramming police cruiser

Suspect wanted for crimes allegedly committed in Kelowna, Salmon Arm and 100 Mile House

New highway proposed between Alberta and B.C.

The route would connect Red Deer to Kamloops

Wet’suwet’en and B.C. government have been talking Aboriginal title for a year

Coastal GasLink says it has agreements with all 20 elected First Nations councils along the 670-kilometre route

Trudeau tightlipped on plan to end protests ‘quickly and peacefully’

The prime minister, who cancelled a two-day trip to Barbados this week to deal with the crisis at home

B.C. budget expected to stay the course as economic growth moderates

Finance minister said ICBC costs have affected budget

Most Read