Sears brand has no value in potential bankruptcy process: lenders

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Sears Holdings Corp. met with its lenders Wednesday night to discuss emergency financing for the embattled retailer, according to people familiar with the matter. The meeting ended without an agreement that would keep Sears
SHLD, -19.83%
  operating as a going concern, according to one of the people.

A group of lenders, including Bank of America Corp.
BAC, -1.98%
 , Wells Fargo & Co.
WFC, -0.80%
  and Citigroup Inc.
C, -1.30%
  , are pushing for the company to liquidate its assets under a chapter 7 bankruptcy filing, as opposed to reorganizing the business under chapter 11, this person said.

Read: Sears would be a brand that has ‘no value’ if it files for bankruptcy



A bankruptcy filing is expected by Monday when Sears must repay $134 million in loans, the people said. They cautioned the situation is fluid and that Sears could still find another source of capital to prop it up through a restructuring.

The Wall Street Journal first reported on Tuesday that Sears hired M-III Partners, a boutique advisory firm, to prepare a bankruptcy filing. The company, which had 866 Sears and Kmart stores as of Aug. 4, has been unprofitable for seven straight years and has closed hundreds of locations.

An expanded version of this report is available on WSJ.com.

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