Sears, lenders that come close to an agreement to keep some stores open
Sears, lenders that come close to an agreement to keep some stores open
Sears, lenders that come close to an agreement to keep some stores open
Sears Holdings
Corp.
SHLD 18.97%
it comes little by little a deal with the lenders about a bankruptcy plan that would close at least 150 stores and provide a vital loan to maintain a small footprint of around 300 locations, according to people familiar with the matter.
As part of the agreement, the lenders, including Bank of America Corp., Wells Fargo & Co. and
Citigroup
Inc.,
People would provide emergency financing of up to $ 500 million.
Sears is expected to file for Chapter 11 bankruptcy on Sunday, the people said. The filing would be submitted before the $ 134 million loan repayment that Sears must grant on Monday.
The company currently has about 700 Sears and Kmart stores, one of the people said. Under the proposed reorganization plan, Sears would close approximately 150 stores immediately, the person said. Another 250 stores will be under evaluation, while some 300 stores that are considered more viable will remain open.
The Wall Street Journal reported for the first time on Tuesday that the 125-year-old retailer hired M-III Partners LLC, a boutique consulting firm, to prepare a bankruptcy declaration. The amount of short-term financing that the company can align before its presentation will help determine if Sears can continue as a going concern and how many stores survive.
Sears, a US retailer since 1886, has been struggling in recent years, closing stores, selling assets and lending money. But it was not always like this. Gordon Weil, author of 'Sears, Roebuck, USA. UU. ', Review the history of the retailer. Stock Photo: Getty
Initially, the banks took a harder stance and they were only willing to provide the so-called debtor financing in possession that would allow Sears to sell inventory and close all its stores. But as the discussions progressed, the parties joined Friday on a plan to keep Sears operating with a much smaller footprint, the people said.
One of the people said that assets such as the Kenmore appliance brand and the Sears Auto Centers could be sold once the company goes bankrupt.
A potential bidder he is hedge fund manager Edward Lampert, according to a person familiar with the situation.
Mr. Lampert, who is the president, chief executive, the largest shareholder and the largest creditor of Sears, offered to buy Kenmore for $ 400 million in August. But the agreement was never blessed by a special committee of independent Sears directors. And the proposal was put on hold after it became clear that the creditors would not support a broader extrajudicial restructuring proposed by Mr. Lampert.
Mr. Lampert, who has controlled Sears for more than a decade, has repeatedly rescued the retailer with short-term loans. However, he is not willing to lend more money if a reorganization plan with the banks is not agreed, one of the people said.
Banks are the main lenders in a $ 1.5 billion asset-backed credit line guaranteed by inventory, as well as in credit cards and pharmacy accounts receivables.
-Soma Biswas contributed to this article.
Write to Lillian rizzo in Lillian.Rizzo@wsj.com and Suzanne Kapner in Suzanne.Kapner@wsj.com
It appeared in the print edition of October 13, 2018 as 'Sears Nears Deal for Bankruptcy'.
.
ORIGINAL ARTICLE THE WALL STREET JOURNAL
Related
!function(f,b,e,v,n,t,s)
{if(f.fbq)return;n=f.fbq=function(){n.callMethod?
n.callMethod.apply(n,arguments):n.queue.push(arguments)};
if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version='2.0';
n.queue=[];t=b.createElement(e);t.async=!0;
t.src=v;s=b.getElementsByTagName(e)[0];
s.parentNode.insertBefore(t,s)}(window, document,'script',
'https://connect.facebook.net/en_US/fbevents.js');
fbq('init', '369524843414444');
fbq('track', 'PageView');
.
SOURCE LINK ERESVIRAL.COM https://www.beviral.online
Comentarios
Publicar un comentario