Sears May Be on the Brink of Bankruptcy
SEARS MAY BE DAYS AWAY FROM BANKRUPTCY
(CNN) – Sears, which was at one point America’s largest retailer and its largest employer appears to be nearing bankruptcy.
One of Sears’ major shareholders just dumped a chunk of his stock for pennies on his original investment.
The company also added a new director Tuesday who is familiar with bankruptcies and restructuring.
And reports circulated that the company is talking to advisers and banks in preparation for a bankruptcy filing.
Sears holdings, the parent company of Sears and Kmart, has until October 15th to pay $134 million worth of debt.
And according to a recent regulatory filing.
CEO Eddie Lampert told the company’s board it needs to restructure more than $5 billion it owes “without delay.”
Sears holdings stock plunged 30% in premarket trading Wednesday.
If Sears does file for bankruptcy, it could try to stay in business, using the court process to shed debt and unaffordable leases.