July 6, 2017 / 12:54 PM / 2 years ago

Sears Canada seeks court nod to restructure; to suspend some payments

FILE PHOTO - A customers enters the Sears store in North Vancouver, British Columbia February 23, 2011. REUTERS/Andy Clark/File Photo

(Reuters) - Sears Canada Inc SCC.TO on Thursday sought court approval for its restructuring efforts, two weeks after the Canadian retailer filed for creditor protection.

The company also said it would suspend some retirement benefits for its employees.

Sears Canada said it also sought court approval for a sale and investment solicitation process.

The company set Oct. 4 as the deadline to obtain court approval of successful bids, while the company’s sale and investment solicitation process has an expected completion date of Oct. 25.

Sears Canada sought creditor protection on June 22 after suffering a steady decline in sales due to competition from big-box retailers and online merchants.

(This version of the story corrects paragraph 2 to remove reference of payments being suspended to suppliers and landlords)

Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Sriraj Kalluvila

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