The retailer’s plan to auction off at least 400 stores won approval Thursday at a bankruptcy court hearing. Sears plans to use the proceeds from the sale to stay in business — at least for the time being.
A committee of Sears' creditors had objected to the plan and argued that the bankrupt retailer should immediately start liquidating to limit its ongoing losses, reported cnn.com. The bankruptcy court judge said he will hold another hearing a week before Christmas to consider whether to go ahead with Sears' effort to stay in business or start the process to close all its remaining stores, the report said.
Sears also disclosed that it has arranged for a $350 million loan from finance company Great American Capital Partners to fund operations during the bankruptcy process. The loan is an important part of the retailer’s play to remain a viable going concern as it heads into the holiday season.
Great American is owned by B. Riley Financial Inc., which provides financing and often serves as a liquidator when a retailer collapses, Bloomberg reported.