Description: Sears Canada was back in the news this week as it shuttered some of its Canadian stores while keeping others open. Sears was also seeking an extension of its creditor protection to allow time to rearrange its affairs. Meanwhile, former Sears employees are recruiting legal help in trying to figure out what happened to the missing $200,000 in the employee hardship fund. A Sears executive had promised to provide $500,000 for a hardship fund to assist employees who had been let go. But the fund appears to be $200,000 short of the half-million it was supposed to have.
Date: October 3, 2017
1) Were you aware of Sears Canada’s financial woes? What do you think they stem from?
2) Would you be interested in a career as a bankruptcy trustee?
3) What ethical issues might emerge in a discussion of the management of this special fund? For example, using the framework of Wiley’s ethics cases in Financial Accounting: Tools for Business Decision Making, Seventh Canadian Edition, who are the stakeholders and what are the ethical considerations?