Sears Canada Inc. and JPMorgan Chase Bank said that their credit card arrangement would be discontinued when the current agreement ends next November.
The agreement pertains to both the Sears and Sears MasterCard credit cards, which would ceased to be serviced by JPMorgan on Nov. 15.
The two parties said they would work together to help identify options for Sears. If a sale of the portfolio occurs, JPMorgan would pay Sears Canada up to 174 million Canadian dollars, or $168.7 million at current exchange, under certain circumstances, although “there is no assurance that such a transaction will be achieved or that the necessary circumstances for the payment will occur.”
Ron Boire, acting president and chief executive officer of Sears Canada, said, “Our customers will be able to continue to use their Sears Canada cards through to November 2015 and we expect no interruption, with the same service level provided previously by JPMorgan Chase. In the interim, we will explore options that will enable us to continue to provide the high level of service which Sears Canada customers are accustomed.”
Sears Canada operates 176 corporate stores, 222 Hometown stores, over 1,300 catalogue and online merchandise pick-up locations and the http://www.sears.ca e-commerce site. Sears Holdings Corp. has disclosed plans to offload the bulk of its 51 percent stake in the Canadian retail through a rights offering.