Electrolux Plans to Stay with Bankrupt Sears

Electrolux Plans to Stay with Bankrupt Sears

Electrolux Plans to Stay with Bankrupt Sears

NEW YORK — Sears has filed for Chapter 11 bankruptcy protection, buckling under its massive debt load and staggering losses.

In September, Lampert - Sears' largest shareholder and creditor and the owner of the hedge-fund ESL Investments - asked creditors to refinance $1.1 billion in debt before the October 15 payment, according to a filing with the Securities and Exchange Commission.

As of Friday afternoon, the company and its creditors were still hammering out the details of a bankruptcy plan.

In September, Lampert proposed that Sears restructure its finances without filing bankruptcy. Negotiators are discussing a loan of about $300 million to $500 million, the person said.

While we have made progress, the plan has yet to deliver the results we have desired, and addressing the company's immediate liquidity needs has impacted our efforts to become a profitable and more competitive retailer.
Only a handful of full Sears and Kmart stores remain in MI.

Sears, once the largest retail store chain in the United States, has filed for bankruptcy protection from creditors after 125 years of operations.

Parts of Sears have already been through bankruptcy.

According to the release, the now-former CEO Edward Lampert will remain Chairman of the Board.

Last year, Sears sold its famous Craftsman brand to Stanley Black & Decker Inc., following its earlier moves to spin off pieces of its Sears Hometown and Outlet division and Lands End.

Yes, Sears Auto Centers remain open, though Sears has announced the closure of certain locations. That's down from 317,000 U.S. employees in early 2006, soon after the merger.

Before bankruptcy seemed inevitable, Lampert's hedge fund ESL had been pushing a debt-restructuring proposal that would avoid a bankruptcy filing.

Sears' stores helped reshape America, drawing shoppers away from the traditional Main Street merchants. With Sears heading toward bankruptcy, any potential for liquidation could mean an end to the lease agreements with Seritage.

Sears dates back to the late 1880s.

The company already has commitments for US$300 million of debtor-in-possession financing from its senior secured asset-based revolving lenders, according to the statement, and it's negotiating a US$300 million subordinated DIP financing with Lampert's hedge fund, ESL Investments Inc. The icon once known for its pristine catalogs, and more recently known for decrepit showrooms and a controversial chief executive, saw its stock price plunge last week after reports that it had hired an advisory firm to prepare a bankruptcy filing ahead of the October 15 payment. But it struggled to get more people through the doors or to shop online.

In the UK, Toys R Us went into administration, closing 105 stores across the nation, after taking a huge hit in sales. If the company ultimately files for bankruptcy and liquidates its locations, companies like J.C. Penney Co., Best Buy Co. and Lowe's Cos. will reap the rewards.

"My mom had always bought her appliances from Sears". Home goods and sporting goods retailers are likely to also benefit.

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