Judge Delays Sanctions Against Sears

A bankruptcy judge agreed to postpone sanctioning Sears Roebuck & Co. until the Chicago-based department store retailer can pursue a class-action settlement to compensate wronged customers. Sears admitted this week that it used “flawed legal judgment” in handling debt collections with bankrupt customers. The nation’s second-largest retailer said it offered to cancel debts, repay interest and give $100 gift certificates as compensation to customers. But after U.S. Bankruptcy Court Judge Carol Kenner threatened to sanction Sears $500 for each of 2,733 wronged customers in Massachusetts, the firm’s attorneys offered to pay that amount--$1.36 million. The judge held off making a ruling until a June 5 hearing, and Sears said it will pursue settling the case through a possible class-action suit.