Listening to CBC Radio discuss the unethical but legal ways Lampert and his Canadian equivalent made out like bandits on demise of Sears Canada. He and his friends made millions by strategically structuring debts and secured loans so he and his are first in line to recover when the liquidation is complete. Meanwhile, severence pay is gone for regular employees while key executives made millons from retention bonuses and considerations before Sears Canada imploded. Health care coverage for employees was canceled immediately and the pension plan is underfunded.
Financial experts say in the U.S., Eddie has placed himself first in line to recover from secured loans against valuable property. As Sears loses its real estate assets, those are the very things that are most valuable to liquidate to cover creditors and employees. Much of those are now owned/controlled by Eddie or his investment buddies or the REIT. So asset recovery will primarily come from inventory liquidation, unless Eddie pseudo liquidates as much stock on hand as possible and keeps that too (helping to pay those 11% interest loans). This explains why vendors are wary wants doing business with Sears on credit. Too exposed.
Employees should not expect any consideration or coverage when bankruptcy does hit. Just look north for an example.