Ex-workers frustrated by Sears

FORMER EMPLOYEES FUME AS COMPANY SEEKS APPROVAL FOR SALE PROCESS

Dozens of former Sears Canada employees packed a Toronto courtroom Thursday to hear the retailer ask for approval to kickstart the process of putting itself up for sale while it is under creditor protection.

“I’m in total shock this happened,” said Zobedida Maharaj outside the Ontario Superior Court.

Maharaj, 53, said she had worked at Sears Canada for 28 years before she was laid off at the end of March when her store was closed.

The senior manager of operations and merchandise said she was initially told she would get eight weeks of severance and benefits but was cut off June 22 when the company secured temporary court protection from creditors. “It’s like getting slapped in the face.” Lawyers for Sears Canada, its lenders, retirees and former employees were before Judge Glenn Hainey to discuss, among other issues, whether the department store owner should be permitted to proceed with a sale.

Sears Canada wants to close dozens of stores in the coming weeks while it negotiates with potential buyers who might acquire some or all of the company’s remaining assets, pending court approvals.

A decision on whether it can go ahead with the sales process was expected later Thursday.

Earlier in the day, Sears Canada struck a deal over benefit and pension payments to retired employees. The retailer had initially asked the court for permission to immediately halt payments for pension, health and dental benefits for former employees, retirees and surviving spouses due to a severe cash crunch, but later agreed to continue payments to retirees until Sept. 30.

In separate documents filed by Sears Canada’s lawyers prior to Thursday’s hearing, Sears Canada’s chief financial officer says it’s “crucial” to begin liquidation sales of inventory no later than July 21 and completing them by Oct. 12. Hainey is expected to hear that motion Tuesday.

However, many former employees, who were asked to leave the courtroom after officials deemed the crowd size was causing a fire hazard, said the company’s compromise on temporarily paying retiree benefits and pension compensation has them cautiously hopeful.

Pina Rupa, 58, from Vaughan, Ont., said outside the courthouse she was angry Sears Canada paid her no severance after she worked there for nearly 40 years.