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.

Just Posted

Penticton Vees outshoot West Kelowna Warriors but don’t earn the win

The Penticton Vees (7-5-1) outshot the West Kelowna Warriors (7-7-1) by a… Continue reading

Tommy Chong says cannabis legalization makes him proud to be a Canadian

Legendary marijuana advocate and comedian celebrates cultural milestone at Kelowna event

West Kelowna candidates discuss new city hall

This week learn about how your candidates feel about a new city hall in West Kelowna

Steps to waive $2.4 million DCC’s made for Lake Country affordable housing project

Council agreed to give first, second, and third reading to waive development cost charges

Science teachers converge on Kelowna for conference

Exposing new instructional classroom tools for science teachers

Cough cough: Kelowna MLA gets flu shot to prep for the cold season

Steve Thomson got his flu shot from Lakeside Medicine Centre Friday

Watch it again: Kelowna mayoral candidates square off

Missing the LIVE Kelowna mayoral debate watch now

B.C. tickets win big in Lotto Max draw

Jackpot carried over; B.C. tickets share Max Millions prizes

‘Mom, I’m in trouble:’ Canadian faces 10 years for alleged graffiti

Brittney Schneider, another tourist caught spraying message on walls of Tha Pae Gate in Thailand

Feds consulting on national anti-racism strategy behind closed doors

Heritage Minister Pablo Rodriguez says people still face systemic racism in some communities

Black trucks figure prominently in Shuswap thefts

Chase RCMP investigating stolen vehicles from several communities

Enbridge aims for mid-November to finish B.C. pipeline repair after blast

A natural gas pipeline that ruptured and burned near Prince George caused an explosion and fireball

How to get government cheques if Canada Post staff go on strike

The Canadian Union of Postal Workers said members could go on rotating strikes as early as Monday

Most Read