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

Saanich man arrested in cross-border drug smuggling operation

William Milton Barnes of Greater Victoria faces multiple charges following six-month investigation

Greater Victoria’s living wage now costs $20.50 an hour

Cost of living increase drives region’s living wage up 49 cents, leaving you able to afford only one latte per year

Vancouver Island is home to some of the ‘rattiest’ cities in B.C.

Three municipalities in Greater Victoria, and three more around the Island have gnawed their way into the top 20

Spill at Victoria airport prompts emergency response

North Saanich Fire and ambulance respond to spill of unknown substance

North Saanich targets recreational pot on ALR land

District adds voice to municipalities calling for production to stay off ALR land

VIDEO: B.C. man recognized for spinning basketball on toothbrush

Abbotsford man holds world record for longest duration of time of 60.5 seconds

Cat found stuffed in box in Dumpster in northeastern B.C.

Still alive, cat was found near Dawson Creek restrained with zip ties, legs forced behind neck

Fears prompt feds to establish BBQ brush safety standards

Wire-bristle safety fears prompt Ottawa to establish BBQ brush safety standards

Don’t forget about women left to sweep up shards of glass ceiling, W7 urges G7

When Prime Minister Justin Trudeau champions gender equality at the G7 he is being asked to raise the concerns of marginalized women

Canadian air travel industry fears pilot flight-time limits will go too far

Air carriers urge feds to slow down flight-time limits for sleepy pilots

Sky-high farmland prices ‘ruinous’ for B.C. agriculture: UFV ag professor

Fraser Valley-based Tom Baumann says $80K-per-acre in area threatens food security

Sights of Saanich bring smiles to Japanese delegation

A small leap highlighted the short but potentially historic visit of a… Continue reading

Political heavyweights hit Washington in hunt for NAFTA deal

Officials from Prime Minister’s office, Foreign Affairs Minister Chrystia Freeland part of talks

Greenbelt Microgreens recall in B.C., Alberta, due to Listeria concerns

Canadian Food Inspection Agency says there have been no illnesses linked to the microgreens

Most Read