Sears Canada plans to close 59 stores and has already begun to liquidate stock.

Sears Canada plans to close 59 stores and has already begun to liquidate stock.
Photo Credit: Ryan Remiorz/The Canadian Press

Anger at Sears prompts legal action, social media furor

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Fury at the terms of the bankruptcy of the big retailer Sears Canada have spawned a social media furor and a legal motion. People took to the internet to call for a boycott after they learned the retailer was going to cut about 2,900 jobs and not pay severance and, at the same time, pay millions of dollars in bonuses to executives.

The online complaints got so bad that Sears has blocked public comments on its Facebook page, reports CBC.

Laid-off employees will not get severance, while senior staff will get millions in bonuses.
Laid-off employees will not get severance, while senior staff will get millions in bonuses. © PC/Sean Kilpatrick/The Canadian Press

Millions to be paid to senior staff

At the same time a legal motion was filed in Ontario Superior Court arguing that Sears’ should not pay $7.6 million in bonuses to 43 members of it staff at head office in Toronto.

Sears Canada told CBC News that “employee retention” bonuses are common in bankruptcy proceedings and they are designed to keep senior staff needed for restructuring the business.

Lawyers for employees and the company will try to come to some agreement on the issue before the case goes to court.

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One comment on “Anger at Sears prompts legal action, social media furor
  1. Vern V Castellano says:

    The Corporate Bankruptcy Laws on the Federal and Provincial Level should be overhauled to better protect workers.The laws now are protecting corporations but not workers,because workers lack the money to hire lawyers that can search for loopholes in laws in order to avoid paying out severance pay to workers.Very unfair and in my opinion a violation of of workers Human Rights.
    I also lost my job after 23 years because of corporate banktuptcy and because of my age now 62 it was difficult to find work that paid the same as my last job.(I didn’t find job that paid as much)