Sears appears to be preparing for a long expected bankruptcy filing

11 October, 2018, 06:43 | Author: Brooke Harris
  • Sears appears to be preparing for a long expected bankruptcy filing

"Alan brings deep experience as a director for companies that went through complex organizational change", said Sears CEO Eddie Lampert, in a statement.

Lampert - Sears' largest shareholder and creditor and the owner of the hedge-fund ESL Investments - asked creditors last month to refinance $1.1 billion in debt before the October 15 payment, according to a filing with the U.S. Securities and Exchange Commission. CNN reported that while that sell-off represented only 8 percent of the investor's holdings, he could be cutting his losses since "shareholders are typically wiped out in bankruptcy".

Lampert, who created Sears in its current form in 2005 by acquiring it in a $11 billion deal and merging it with his discount retailer Kmart, proposed deals to reduce the company's debt load to $1.2 billion from $5.6 billion in September. When Lampert took over as head of the company five years ago, there were 2,000 stories.

Sears stores at Golden Triangle Mall in Denton and Ridgmar Mall in Fort Worth closed this year.

A potential Sears Holdings (ticker: SHLD) bankruptcy could be a blessing for some real estate investment trusts, argues Wells Fargo .

Sears shares are down 35 percent this morning and trading at 38 cents a share. Talks are under way to arrange debtor-in-possession financing for a bankruptcy filing that could come in the next few days, the source added.

But the retail landscape is littered with out-of-business brands that tried to reorganize in the bankruptcy process and liquidated their businesses instead.

Hurricane Michael reaches Category 2, threatens southern US
A National Ocean Service water level station at Apalachicola recently reported almost 5.5 feet of inundation above ground level. The National Hurricane Center in Miami says Hurricane Michael would be the first Category 4 storm to hit Florida's Panhandle.

However, Lampert wants to restructure the debt without filing for bankruptcy protection, because he views bankruptcy as risky for retailers, the paper said.

Sears, which was the world's largest retailer in the 1960s, has been struggling in recent decades, in the face of declining foot traffic as brick-and-mortar stores struggle to compete with online stores led by Amazon.com.

Sears was at one point America's largest retailer and its largest employer.

Sears and Kmart merged to form Sears Holdings in 2005 when they had 3,500 USA stores between them.

The 125-year-old company, which has not turned a profit since 2010, has approached several banks to prepare for a bankruptcy filing, according to CNBC.

If Sears were to file for bankruptcy, its financial performance during the upcoming holiday season could prove crucial in determining its future, according to the sources.

Recommended:



Popular

A New Version of The Legend of Zelda Just Launched on Switch
Anything you don't immediately have access to will be easy to buy given how many rupees you start this version of the game with. You'll begin with all equipment, incluing your White Sword, the Magical Shield, the Blue Ring, and even the Power Bracelet.

Huawei teases a gaming smartphone; might launch alongside Mate 20
At the event, Huawei is expected to announce the Mate 20 , the Mate 20 Pro , and the Mate 20 Porsche Design. The Mate 20 Pro sports the same tri-camera setup as the non-Pro version, but extends the front notch.

Did Crown Prince Order Murder of Saudi Journalist?
He had apparently drawn the wrath of the Saudi government, which has become an ever-closer USA ally under President Donald Trump . The Turkish government has claimed that Khashoggi was killed in the consulate , on the orders of the Saudi government .

Google+ to shut down after security bug
The search giant states that it wasn't able to maintain "a successful Google + product that meets consumers' expectations". The bug has reportedly existed since 2015, and Google does not know if the information has been used.

Foreign tourists among 9 killed in flooding on Spain’s Mallorca island
According to the Spanish weather agency, more heavy rainfall is expected in eastern and southern parts of the Iberian peninsula. Emergency services confirmed that there had been at least five deaths in total, adding that "several [people] are missing".

PSN name change CONFIRMED
So 24 year-old TW33NY_BOppErZ can now rest easy that they can change their handle to something more palatable in the new year. Sony is trialing a feature which will finally allow PlayStation users to change their PlayStation Network Online ID.

Heavy Rain Becomes Threat as Michael Moves In
But forecasters noted there is an increasing risk of risky surge, rainfall and wind for those in the cone. Hurricane Hunters are collecting data on the storm, and that data will be fed into our forecast models.

Older people advised to get free flu jabs this autumn
According to the Centers for Disease Control and Prevention (CDC), an estimated 80,000 Americans died from the flu previous year . After a hard flu season last winter, the CDC is now recommending people get vaccinated as soon as the vaccine is available.

Official Rock & Roll Hall of Fame Nominees
Fans will once again have the opportunity to vote for their favorites. The 2019 induction ceremony will be held in Brooklyn on March 29th.

Oil dips as IMF lowers global growth outlook; eyes on US hurricane
Reuters said that Indian Oil would buy six million barrels of oil and Mangalore Refinery and Petrochemicals three million barrels. Iran accounts for 10% of India's crude oil imports, making it the second largest importer of Iranian oil behind China.