Sears Canada creditors looking to sue the company

Several Sears Canada creditors are looking to sue the company’s executive officers and directors for negligent misrepresentation and oppression.

The creditors are asking an Ontario judge for permission to launch their case against the company that is protected under the Companies’ Creditors Arrangement Act.

The retailer’s court–appointed monitor has advised the creditors that “it believes such motions should be delayed,” but that the group should schedule a date for the court to hear their claim.

Lawyers of former employees are also asking for the creation of a ‘hardship fund’ for those that were fired without severance. The funds would come from a pool of money set aside for employee bonuses.

The monitor told the Canadian press that it approves of this fund.