Sears Hometown gets approval of key employee retention plan

By Sarah Lizee

Olympia, Wash., Jan. 4 – Sears Hometown Stores, Inc. gained approval of a key employee retention plan, according to an order filed Tuesday 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 a 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.

The retailer is based in Hoffman Estates, Ill. The company filed bankruptcy on Dec. 12 under Chapter 11 case number 22-11303.

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