Sears’ Creditors Tell Bankruptcy Court to Shut the Retailer Down
Time could be running out for Sears.
A group of the struggling retailers creditors called the chain’s turnaround plan “nothing more than wishful thinking” and said that staying in business “may no longer be an option” for Sears in a court filing Friday, according to a report from CNN.
Sears, which filed for bankruptcy last month, has asked the court to approve a plan that would see it reorganized around a smaller base of profitable stores. The creditors, though, said they fear those whose debt is not backed by hard assets might not be repaid if the company moves forward with its turnaround plan.
Exactly how much of an impact this will have on Sears’ ultimate fate remains to be seen. Bankruptcy courts prioritize the creditors, putting the onus on Sears to demonstrate why it believes its plan is the best way to ensure those lenders get their money back.
A court hearing is scheduled for Thursday to examine the company’s proposal. A committee of creditors, meanwhile, is slated to meet with company officials Monday.
Sears, in its bankruptcy filing, listed more than $10 billion in debts and more than $1 billion in assets. The company, last week, added 40 more stores to its list of planned closures. That was on top of the 142 it had already announced it would shut down around the end of the year.
Chairman Eddie Lampert, meanwhile, says he is still fighting to save the company, with his hedge fund willing to contribute some of the $300 million loan the company needs.