Sears Hometown Stores Class Action - Sotos Class Actions

Sears Hometown Stores

On June 22, 2017, Sears Canada filed for creditor protection under the Companies’ Creditors Arrangement Act (the “CCAA”). The Class Action has been stayed (put on hold) as a result of Sears Canada’s CCAA filing.  We have also brought a class action alleging oppression against Sears Canada, its directors, and US parent corporations.  Further information on that class action can be found at the “Sears Canada Oppression” class action.

This class action is on behalf of approximately 260 Sears “Hometown” stores operating in Canada on or after January 1, 2011.

The claim alleges that the Sears defendants breached their contractual duties and duties under provincial franchise laws by forcing the Hometown store dealer-owners to work for subsistence-level compensation and by depriving them of any realistic opportunity to share in the profits generated by the Hometown store system.

The claim also alleges that Sears has encroached on the dealers’ protected market areas through direct-channel sales. The dealers claim $100 million in damages and injunctive relief.

  • January 29, 2018: 1291079 Ontario Limited’s motion to have MNP appointed as financial advisor to the Class was adjourned. A copy of the Endorsement can be viewed here.
  • January 25, 2018: Sotos LLP and Blaney McMurtry are appointed as representative counsel to represent the interests of the Class with respect to advancing a claim on behalf of the Class pursuant to the Claims Procedure Order dated December 8, 2017 in the CCAA filing. A copy of the Order can be viewed here.
  • January 25, 2018: See Notice to Class here.
  • January 19, 2018:  We are seeking a representative order in the CCAA to represent the Hometown Dealers.  We are also seeking to have MNP LLP appointed as financial advisors to the class. This motion will be heard January 29, 2018.  Our intent is to file a Proof of Claim on behalf of the class setting out the class’ damages.
  • June 22, 2017: Sears has filed for creditor protection under the Companies’ Creditors Arrangement Act (the “CCAA”).  This filing stays (puts on hold) the class action.  We are currently reviewing and assessing the class’ rights in the CCAA filing.
  • October 21, 2015: A statement of claim was issued alleging that Sears oppressed the class members when it paid out a $500 million dollar dividend to its shareholders in December 2013. A copy of the statement of claim can be viewed here.
  • February 26, 2015: The statement of claim was amended. A copy of the amended statement of claim can be viewed here.
  • September 8, 2014: The action was certified as a class action.
  • June 20, 2014: A motion to certify the action as a class action was heard on June 11, 2014 in Milton.  The decision is currently under reserve. We will post an update as soon as the decision is released.

David Sterns

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Karen Whibley

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