2,900 former Sears Canada employees are wondering how the company can still be in business and cut off their severance payments.
The negotiated severance is now being cut off as part of the company’s court supervised restructuring.
Sears says the severance payments can’t be made because of cash restraints but says former employees may be able to file a claim for payments depending upon the outcome of on-going insolvency proceedings. However, as unsecured creditors, they will probably receive nothing.
Last month Sears Canada announced a major restructuring closing dozens of stores and slashing thousands of jobs.