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

Two types of civic engagement in PIB

Some voted in the byelection, others protested the polls, as Penticton Indian Band fissures continue

Penticton Vees look to carry offensive punch to Trail

Penticton Vees scored 28 goals in three games

One person sent to hospital after fire near Keremeos

Fire ripped through a shed and Winnebego at Sunkatchers RV Park Co-operative

Penticton man fights to stay in Canada, keep life-saving health care

If Kris Reyes is denied permanent residency, the cost of his dialysis would run too high to keep up

Electrical box sparks fire in industrial zone

Penticton Fire Department responded to the electrical fire at around 7:30 a.m. Wednesday

One person sent to hospital after fire near Keremeos

Fire ripped through a shed and Winnebego at Sunkatchers RV Park Co-operative

Education minister blasts Chilliwack school trustee on gender issues

Fleming calls Neufeld’s behaviour ‘shameful’ and ‘unacceptable’

BC Transit buses to get safety door for drivers

These new full-length doors will be tested in Victoria, Kelowna and Abbotsford

‘Fresh eyes’ looking into three missing Cowichan Tribes men

First Nations want answers to their disappearances

Pedestrian hit moments after receiving safety reflector from police

The Vancouver Island man was treated for minor injuries by police at the scene

FortisBC LNG site exports first shipment of gas to China

The shipment is part of a pilot project that could see more exports in the future.

BC RCMP hunt for white SUV that rammed cruiser

Kamloops RCMP are looking for a white SUV headed north on the Yellowhead Highway

B.C. to reimburse methadone patients for taking clinic fees off welfare cheques

Provincial government agrees to pay back more than $5.5 million in deducted fees

Stiff fine for B.C. man caught trafficking bear parts

A Cache Creek resident was charged after an undercover sting operation by conservation officers

Most Read