Do they actually owe any severance to staff if they give them proper notice? Severance is in lieu of notice so they can just tell everyone that in 12 weeks the store is closing and you will be out of a job. That provides a lot of time for them to start looking for new jobs.
It sucks for the employees but I don't think there is any obligation on Sears part even if they do have cash.
Do they actually owe any severance to staff if they give them proper notice? Severance is in lieu of notice so they can just tell everyone that in 12 weeks the store is closing and you will be out of a job. That provides a lot of time for them to start looking for new jobs.
It sucks for the employees but I don't think there is any obligation on Sears part even if they do have cash.
So where is the obligation to give giant bonuses to the people in charge of a failing company?
I haven't seen so many people at North Hill Sears since I was 10. Wished the cafeteria was open for fries and gravy.
We went tonight and it was a waste of time. Only 10-20% most stuff. Much better sale prices at Bay Day. Also, I think a lot of people were getting burned with tickets in the pay lot.
So where is the obligation to give giant bonuses to the people in charge of a failing company?
No obligation exists normally. I haven't looked to see if it's the case with Sears but it's not uncommon to have a retention bonus for key employees or management that are needed to stay throughout the CCAA process. It has to be approved by the court. The justification that's presented to the court is that, without the bonus those people would quit to go elsewhere and you need to give them a bonus to entice them to stay. In my view (and this is my area of practice) it's often oversold.
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I recall them doing this back in the day as well and getting in hot water for it. Jacking up their prices (or never selling at the 'regular' price to begin with) and then advertising what appears to be a great deal when in fact it is not.
Actually, they are finally coming down to an actual sale prices now. Picked up a toaster oven yesterday that was quite a bit less then the competitors.
Not unlike the oil & gas industry situation with the Redwater case, where federal bankruptcy laws allow companies to walk away from their environmental liabilities. Except in this case not even an orphan fund so if they can't get the money from Sears it will end up with taxpayers.
There's something fundamentally messed up with the way bankruptcy works in our country, with shareholders getting their money back while employees, pensioners, and the public get bubkas.
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If the land belongs to Concord Pacific now, shouldn't it be their problem?
It might depend on the purchase agreement, which if Concord Pacific did their due diligence would presumably have explicitly dealt with previous environmental liability. There is still the potential under the Environmental Protection and Enhancement Act for the government to designate the current owner of the property as a responsible party, if they did here I imagine it would end up in the courts.
There's something fundamentally messed up with the way bankruptcy works in our country, with shareholders getting their money back while employees, pensioners, and the public get bubkas.
I think what is fundamentally messed up is your understanding of how bankruptcy works.
Shareholders only get assets that are left after all liabilities are paid off. In cases of bankruptcy, this is generally zero, or close to it.
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I think what is fundamentally messed up is your understanding of how bankruptcy works.
Shareholders only get assets that are left after all liabilities are paid off. In cases of bankruptcy, this is generally zero, or close to it.
Yup - the news has tried to spin it as the shareholders took all the money by saying so many millions of dollars were paid to shareholders through dividends over the past several years, but in reality the shareholders get zero from bankruptcy as the company is well underwater.
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