Sears employees, pensioners alarmed by insolvency fees, lawyers say
Sears Canada pensioners, former and current employees say the nearly $52.9 million in professional fees paid by the shuttered retailer during the insolvency process is alarming and concerning, their lawyers told an Ontario court today, noting they reserve the right to challenge them at a later date.
Andrew Hatnay, a lawyer representing Sears pensioners, told Justice Glenn Hainey that his clients are concerned about the breadth of the fees. Susan Ursel, a lawyer representing current and former employees, echoed a similar sentiment.
Sears Canada closed its remaining stores on Jan. 14, after filing for creditor protection last year, to leave it with just 70 employees by the end of this month, according to the court-appointed monitor's report.
The lawyers' comments came during an Ontario Superior Court hearing in Toronto as Hainey approved the monitor's fees of roughly $14 million, that lawyers for the employees and pensioners did not oppose.
The judge also approved an extension of the retailer's creditor protection until April 27 to allow the company time to, among other things, work out disputes with certain landlords over unintentional payments made by Sears.