Sears Hometown Stores proposes key employee retention plan

Chicago, Dec. 20 – Sears Hometown Stores, Inc. filed a motion for a key employee retention plan, according to a filing with the U.S. Bankruptcy Court for the District of Delaware.

As of the petition date, the debtor had 16 full-time employees.

The key employee retention plan will pay bonuses to employees throughout the year if they remain employed through a specified date as the company navigates its bankruptcy case.

The debtors identified 16 key non-insider employees.

Each employee would be entitled to a bonus upon an emergence event, meaning a qualifying termination, an emergence, a dismissal or a case conversion.

The bonus is a percentage of each employee’s salary and ranges from $250 to $68,000, for an aggregate total of $380,000.

The employees had been promised a special award bonus and severance payments. Employees who agree to the plan waive their rights to the severance payments and the special award bonus which has not been paid.

A hearing regarding the plan is scheduled for Jan. 12 with objections due by Dec. 29.

The retailer is based in Hoffman Estates, Ill. The Chapter 11 case number is 22-11303.

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