Reports: Sears bankruptcy looming
SAN JUAN – Sears Holdings may file for bankruptcy in the coming days, stateside media report. The retailer faces a $134 million debt payment due Monday that it may not be able to make, and has yet to reach an agreement with its largest shareholder, Chairman and CEO Eddie Lampert, to restructure its debts and sell assets, according to USA Today.
Sears Holdings includes Sears and Kmart, and JC Penney, which are reportedly worth a combined $592 million, according to a Forbes piece.
The Wall Street Journal and CNBC report that Sears is working with advisers to prepare a potential bankruptcy filing as early as this week.
CNBC also reported that Sears contacted financiers to secure potential financing to operate in bankruptcy. A Chapter 11 bankruptcy filing would give Sears a chance to cut debt and close more stores to try to survive as a smaller company.
While Sears’ stateside stores are having problems, its Puerto Rico business is faring better but a bankruptcy filing would impact all locations.
On Tuesday, Sears announced that Alan J. Carr, managing member and CEO of Drivetrain LLC, joined its board.
The company said Carr has “significant experience as a principal, investor and advisor leading complex financial restructurings, as well as serving as a director of reorganized businesses in the U.S. and Europe. Carr was previously an attorney at Skadden, Arps, Slate, Meagher & Flom LLP and Ravin, Sarasohn, Baumgarten, Fisch & Rosen.”
“Alan brings deep experience as a director for companies that went through complex organizational change. We are pleased to welcome him to the Board and look forward to the benefit of his expertise as we work to maximize value for the Company and its stakeholders,” Lampert said.
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