After filing for bankruptcy protection in an Ontario court last month, Sears Canada said Friday that it plans to dole out big bonuses to senior management while the retailer trudges through a painful restructuring, even as thousands of laid-off workers aren’t being paid promised severance.
According to court documents, Sears – which promised to close 59 stores and eliminate 2,900 jobs across the country as part of a court-supervised restructuring process – will pay up to $7.6 million in retention bonuses to 43 executives and senior managers at the company’s head office in Toronto – the same management team that lead the company as sales plummeted and it spiraled into insolvency. As CBC News reports, that works out to an average of $176,744 per employee, although it’s unlikely the money will be divided up so evenly.
Meanwhile, the company said it won’t be paying lower-level employees a severance, which could equate to a loss of tens of thousands of dollars per person. Predictably, the news isn’t going over well with the company’s laid-off workers.
This post was published at Zero Hedge on Jul 14, 2017.
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