TORONTO, March 21, 2014 /CNW/ - In light of recent reports concerning
the status of customers who entered into arrangements with SHS Services
Management Inc. (SHS), an Installation Services Org. (ISO) company that
was an independent third party provider of home installed products and
services licensed under the Sears Home Services banner, Sears Canada is
providing an update on proceedings as it relates to customers. On
December 13, 2013, PricewaterhouseCoopers Inc. (the "Receiver") was
appointed as Receiver pursuant to the Bankruptcy and Insolvency Act,
with the mandate to liquidate assets in order to repay outstanding
creditors. Since that time, the Receiver has been discharging its
duties under the supervision of the Court.
Sears apologizes to customers for the inconvenience they may have
experienced as a result of the decision of SHS to cease operations and
seek the appointment of the Receiver. Sears has operated in Canada for
over 60 years by pledging customer satisfaction and is committed to
continue seeing the resolution of every SHS transaction so that
customers receive the work for which they contracted or are refunded
for services not rendered. This has already happened in the majority
of cases and Sears is working diligently to see that services are
completed or refunds provided to the remaining customers.
In a report to the Court, the Receiver stated that the amount owed to
customers who had made deposits but did not receive services from SHS
was $1,807,702. The vast majority of these customer deposits were made
by credit cards. Customers who paid using their Sears Financial credit
card were either not charged or have subsequently been credited for the
purchase. Customers who paid using third party credit cards have been
able to obtain a refund for services not rendered. For those customers
who weren't able to obtain such refunds and for the remaining customers
who paid by cash or other means, Sears will ensure that they receive
the work for which they contracted or repayment. All customers who made
deposits with SHS will receive services or be repaid. Inquiries from
customers can be made with Sears toll-free at 1-866-506-7779.
Sears will ensure that all Sears Home Services warranties are honoured,
regardless of whether Sears or SHS provided the installation. Warranty
inquiries can be made with Sears at 1-800-4-MY-HOME.
Creditors and Liens
In a report to the Court, the Receiver stated the amount owed to
creditors by SHS as $8,936,036. As part of the Receivership, the
Receiver is liquidating SHS assets in order to distribute proceeds to
creditors in accordance with the Court-supervised process.
Sears understands that there are some reported instances in which
creditors who were not paid by SHS have resorted to putting liens on
the properties of customers who contracted for their services through
SHS. Under Court supervision, the Receiver has now begun a process for
lien holders to file their claims with the Receiver. This may lead to
a process in the Receivership whereby lien holders will be paid and
their liens removed from customers' homes. Until these liens are
lifted, for customers who are selling their home and are impeded from
doing so or are otherwise affected by the presence of a lien related to
SHS, Sears will work with them to remove this barrier.
Personal Information
There have been reports of individuals misrepresenting themselves as SHS
or the Receiver and contacting customers to offer refunds. Sears
encourages customers to exercise caution when giving their personal
information and credit card details over the phone. Neither Sears nor
the Receiver is calling customers asking for credit card or other
personal information. Individuals who receive such calls are asked to
email the Receiver at shs.questions@ca.pwc.com with details of such calls. Individuals who have been defrauded should
contact the authorities, their bank and the local police to report the
incident.
Sears Canada is a multi-channel retailer with a network that includes
176 corporate stores, 234 Hometown stores, over 1,400 catalogue and
online merchandise pick-up locations, 97 Sears Travel offices and a
nationwide repair and service network. The Company also publishes
Canada's most extensive general merchandise catalogue and offers
shopping online at www.sears.ca.
SOURCE Sears Canada Inc.
