Retirees of Sears Canada Inc. have asked an Ontario court to award them the remainder of the former department store chain's cash to help fund their pension shortfall.
A motion filed in the Ontario Superior Court of Justice on Friday claims about 18,000 Sears retirees will receive smaller pension benefits than they earned due to a roughly $260 million shortfall in the plan.
The motion says the former employees should be entitled to the money ahead of the retailer's other remaining creditors. Debts to secured creditors have already been repaid.
The motion says the retirees are claiming nearly $730 million in total, including money for health, life insurance and other benefits for retirees.
A recent report by the court appointed monitor for the retailer's insolvency FTI Consulting Canada Inc. shows Sears Canada's estate has about $135 million in cash.
The department store chain's last remaining stores closed their doors for the final time on Jan. 14 this year.
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