SEARS CANADA COLLAPSE: NDP RENEWS CALLS FOR AN INVESTIGATION

FOR IMMEDIATE RELEASE
October 12, 2017 

SEARS CANADA COLLAPSE: NDP RENEWS CALLS FOR AN INVESTIGATION

OTTAWA – New Democrats are once again calling on the Liberal government to hold a parliamentary investigation into the liquidation of Sears Canada. In the wake of reports that Sears will seek to liquidate their entire Canadian operations, the NDP wants the investigation to also pay special attention to the possible misuse of bankruptcy legislation to enrich management and shareholders at the expense of employees. 
 
“Sears Canada payed out huge amounts of money to shareholders before becoming insolvent. They used a process that allowed them to give $9.2 million in bonuses to their executives, while laying off workers and denying severance pay,” said NDP Pensions Critic Scott Duvall. “This is cynical beyond measure and should not be allowed.”

Sears Canada announced that it would seek permission in court to liquidate the entire company, closing the remaining 130 outlets and terminating all 12,000 employees. Industry insiders have expressed concern on how Sears was allowed to collapse, given that $1.5 billion in dividends have been paid out to shareholders in recent years. 
 
“There is a sense that the collapse of Sears Canada was allowed to happen intentionally. Clearly, the bankruptcy process is failing to protect Canadian workers and their families,” added NDP Ethics and Labour Deputy Critic, Karine Trudel. “For too long, consecutive Liberal and Conservative governments have been putting well-connected insiders - and the corporations and multinational companies they represent – first, and asked Canadian workers to settle for less.  New Democrats will keep fighting for workers, pensions and a fairer Canada that works for everyone, not just the big corporations and the wealthiest.” 

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For more information, please contact: 
NDP Media Centre: 613-222-2351 or media@ndp.ca