Sears’ future hangs in balance
Time is running out for 125-year-old Sears Holdings Corp.
As of Sunday afternoon, Sears was reportedly preparing to file for bankruptcy protection, just hours before a $134 million debt payment comes due on Oct. 15. (The cash-strapped retailer had previously warned it may not meet the payment.)
According to Reuters, Sears has reached a last-minute deal with lenders that would allow it to keep at least 300 hundred stores open as part of a Chapter 11 bankruptcy restructuring plan, with the future of the remaining locations uncertain. The chain currently has a total of about 700 stores (Sears and Kmart combined).
Reuters also reported that Eddie Lampert, CEO of Sears, is exploring a bid for some of the retailer’s businesses and real estate once it files for bankruptcy. Lampert is also Sears’ biggest shareholder and one of its biggest creditors. He has been helping to keep Sears afloat for years, primarily with billions of dollars of short-term loans though his ESL Investments hedge fund.
This is a developing story. Check back later for updates.
As of Sunday afternoon, Sears was reportedly preparing to file for bankruptcy protection, just hours before a $134 million debt payment comes due on Oct. 15. (The cash-strapped retailer had previously warned it may not meet the payment.)
According to Reuters, Sears has reached a last-minute deal with lenders that would allow it to keep at least 300 hundred stores open as part of a Chapter 11 bankruptcy restructuring plan, with the future of the remaining locations uncertain. The chain currently has a total of about 700 stores (Sears and Kmart combined).
Reuters also reported that Eddie Lampert, CEO of Sears, is exploring a bid for some of the retailer’s businesses and real estate once it files for bankruptcy. Lampert is also Sears’ biggest shareholder and one of its biggest creditors. He has been helping to keep Sears afloat for years, primarily with billions of dollars of short-term loans though his ESL Investments hedge fund.
This is a developing story. Check back later for updates.