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Sears Is Reportedly Days Away From Bankruptcy as Debt Payment Looms

Shares for Sears Holdings Corp. are tumbling after reports have surfaced that the company is arranging to file for bankruptcy protection as early as this week.
The news, first reported in the Wall Street Journal, comes as the embattled retailer — parent company to Sears and Kmart — faces a $134 million debt payment due on Oct. 15. A Chapter 11 bankruptcy filing would help the company to cut debt and close unprofitable stores in order to stay afloat as a smaller retail enterprise.
Yesterday the WSJ report added that Sears had tasked boutique advisory firm M-III Partners LLC to assist in bankruptcy proceedings ahead of the looming deadline. WSJ also reported Tuesday that Sears had hired restructuring expert Alan Carr to its board.
In a last-ditch effort to prevent bankruptcy, CEO and major shareholder Eddie Lampert’s hedge fund, ESL Investments Inc., urged Sears in a proposal disclosed late September to restructure its liabilities as well as sell about $1.5 billion in real estate and $1.75 billion in other assets. The move would effectively reduce the department store chain’s debt by nearly 80 percent to approximately $1.2 billion. (Lampert first offered to purchase the company’s real estate through his hedge fund in April.)
“Sears must

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Via:: https://footwearnews.com/2018/business/retail/sears-bankruptcy-filing-debt-1202693744/