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.