July 25, 2021

Sears tries to reach an agreement to keep 300 stores open

Sears tries to reach an agreement to keep 300 stores open

The Sears business consortium is trying to reach an agreement with lenders about its bankruptcy plan, in which it would close 150 of its stores and retain another 300, according to the Wall Street Journal.

The media, which cites unidentified sources, ensures that banks Bank of America, Wells Fargo and Citigroup will provide emergency financing of 500 million dollars.

As part of the proposed reorganization plan, Sears would immediately close 150 stores, 300 more would remain open and the operation of hundreds more would be evaluated.

The objective, according to the specialized media CNBC, is to keep the company afloat until Christmas with the hope of finding these months a buyer while Sears is bankrupt.

The new details are released after the Wall Street Journal reported last Tuesday that Sears, a 125-year-old department store chain in the United States, had hired the M-III company to advise the company. bankruptcy filing process.

For its part, the CNBC specialized media revealed on Wednesday that Sears had asked a bank for a specific type of loan that is requested to obtain sufficient liquidity to continue operating while it is declared bankrupt.

Sears faces the payment of a loan that expires next Monday of 134 million dollars, but that already said that probably will not be able to face.

The WSJ source said it depends on how much short-term funding it can get before filing for bankruptcy, which will determine if the company can continue and how many stores could survive.

2010 was the last year of profits for Sears, which has had to face giants of online sales, and analysts now say that it would need to generate more than $ 1 billion to continue operating.

It currently has fewer than 900 establishments, compared to the 3,500 that it used to have, and about 90,000 employees instead of 100,000.


Source link