Sears Canada seeks court ap­proval to sus­pend ben­e­fits for re­tirees

The Guardian (Charlottetown) - - BUSINESS -

TORONTO — Sears Canada says it will go to court next week to seek ap­proval to sus­pend ben­e­fits for its re­tired em­ploy­ees as well as spe­cial pay­ments to its de­fined ben­e­fit pen­sion plan.

The ail­ing re­tailer says it will also ask the On­tario Su­pe­rior Court on July 13 to ex­tend court pro­tec­tion from cred­i­tors to Oct. 4, giv­ing it time to seek out po­ten­tial in­vestors and buy­ers and con­sult with its land­lords, em­ploy­ees, sup­pli­ers and cred­i­tors. Sears Canada had in­di­cated in its ini­tial court fil­ings on June 22 that it planned to sus­pend life in­sur­ance, health and den­tal ben­e­fits to cer­tain em­ploy­ees dur­ing the re­struc­tur­ing.

The com­pany ex­pects to com­plete its sale and in­vest­ment so­lic­i­ta­tion process by Oct. 25.

After years of de­clin­ing sales, Sears Canada sought cred­i­tor pro­tec­tion last month.

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