Business

Sears Canada & JPMorgan terminate credit card deal

JPMorgan Chase and Sears Canada said Monday they plan to terminate their credit card agreement starting next November.

JPMorgan Chase and Sears Canada said Monday they plan to terminate their credit card agreement starting next November.

"JPMorgan Chase will continue to service the Sears Canada credit card business to at least Nov. 15, 2015 and will have no obligation to do so after such date," the joint statement said.

The two companies said in a release that they will explore a sale of the credit card portfolio to another party. If that happens, JPMorgan has agreed to pay Sears up to $174 million, but there's no guarantee that will happen.

In a release, the two companies said they will "work together using a request-for-proposal process to help identify options for the future of the program."

Both companies said card holders can continue to use their cards until that date and can expect the same level of service to continue, without interruption.

Sears is in the midst of a turnaround plan that has seen the company close underperforming stores. But there are still 176 Sears stores and more than 220 Sears Hometown stores across Canada.

With files from Reuters

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