Sears workers demand hardship fund as company teeters on edge of closing

Sears workers demand hardship fund as company teeters on edge of closing

- in Business
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By Reuters

As Sears Holdings Corp teeters on the brink of liquidation, its employees are pushing for a hardship fund they hope can replicate the success of bankrupt retailer Toys ‘R’ Us, whose workers collected $20 million in severance pay from its former owners.

Sears on Tuesday agreed to consider a revised takeover bid from Chairman Edward Lampert, temporarily staving off a liquidation that would have spelled the end of the company.

The latest attempt by Lampert follows a decade of revenue declines, hundreds of store closures, and years of deals in an attempt to turn around the company he put together in 2005 in an $11 billion deal.

Now, the retailer’s approximately 68,000 workers are pushing Lampert to set up a financial fund giving laid-off workers a week of pay for every year of service.

“If he (Eddie Lampert) can drum up the money for another takeover bid, he can find the resources to come up with a hardship fund,” said Onie Patrick, a laid-off Kmart employee who is part of the organizing effort.

A Sears spokesman declined to comment.

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