Toronto -- A "Sears Hometown" store owner in Woodstock, Ontario (Canada), has launched a class action lawsuit on behalf of approximately 260 Sears Hometown dealers across Canada against Sears Canada and its American affiliate, Sears. Both are subsidiaries of Sears Holding Corp.
The lawsuit alleges that Sears lowered dealers' commissions, reduced advertising for local stores and bypassed the franchises by selling directly to customers who are located within their markets.
The dealers also claim that Sears is setting their compensation and work conditions, without abiding by labor laws or franchise protection laws.
"We are tired of disappointing our customers because we lack the resources to serve them properly," said Jim Kay, the dealer who filed the class-action lawsuit, in a statement. "We are tired of disappointing our customers because we lack the resources to serve them properly. We are tired of facing the public without a smile, because we know there is no paycheck at the end of the week. We are tired of being fed scraps for the benefit of a U.S. hedge fund billionaire."