BREAKING NEWS : South Harrison Street murder suspect arrested in Indianapolis Full Story

Sears' bankruptcy appears imminent

Sears has three days to come up with $134 million.Sears Holdings (...

Posted: Oct 12, 2018 6:10 PM
Updated: Oct 12, 2018 6:10 PM

Sears has three days to come up with $134 million.

Sears Holdings (SHLD), the parent company of Sears and Kmart, faces a Monday deadline to pay that much in debt.

Companies

Sears Holdings

Banking, finance and investments

Bankruptcy

Business financial trouble

Business, economy and trade

Company activities and management

Financial markets and investing

Financial performance and reports

Securities trading

Stock markets

Corporate bankruptcy

The most recent filing from Sears showed it had only $193 million in cash on hand as of August 4, the end of its last fiscal quarter. The company also has $269 million available to it from lenders, according to figures it released on September 13.

Having so little cash available would make it very difficult for Sears to pay back $134 million in debt due on Monday. Plus, Sears also has to pay its current vendors and employees and stock up inventory before the holidays.

All signs point to a bankruptcy filing in the next few days. Sears' stock has fallen more than 50% in the last five days to around 35 cents a share.

Three companies that sell items at Sears told Reuters this week that Sears had missed payments to them over the past few weeks. One of Sears' major shareholders recently dumped a chunk of his stock for pennies on his original investment. The company added a new director this week who is familiar with bankruptcies and restructuring.

And reports are swirling that the company is talking to advisers and banks in preparation for a bankruptcy filing. According to the Wall Street Journal, Sears has hired M-III Partners, a boutique advisory firm specializing in seeing companies through bankruptcies and restructuring, The company is also talking to lenders about providing it with debtor-in-possession financing, CNBC reported. That kind of loan is used by companies that file for bankruptcy to fund operations during the process. Usually, funding is secured well before the final days.

Companies that file for bankruptcy typically negotiate a special kind of loan to stay in business while they go through the bankruptcy process. There are several reports that Sears is in talks for that kind of financing, but negotiations don't appear to be going well.

The company's lenders are encouraging Sears to shut down and liquidate, the Wall Street Journal reported Thursday. Sears' management has reportedly said it hopes to use Chapter 11 of the bankruptcy law to stay in business rather than Chapter 7, which leads to closing.

If Sears does file for Chapter 11, the company could try to stay in business, using the court process to shed debt and unaffordable leases. It could attempt to emerge as a profitable company. But the retail landscape is littered with brands that tried to reorganize in the bankruptcy process and liquidated their businesses instead, such as RadioShack, Toys "R" Us and Sports Authority.

Sears and Kmart merged to form Sears Holdings in 2005, when they had 3,500 US stores between them. A long series of store closings has left it with under 900 today.

In July Sears closed its last store in Chicago, once its hometown. The company recently announced another 46 store closings that will take place just before the start of the holiday shopping period.

Sears and Kmart had 89,000 employees as of February 3 of this year, according to a company filing.

Indiana Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 78632

Reported Deaths: 3113
CountyConfirmedDeaths
Marion16437734
Lake7952283
Elkhart505191
Allen4161164
St. Joseph376683
Hamilton3033104
Vanderburgh212215
Hendricks1978109
Johnson1819119
Cass18139
Porter141539
Clark135250
Tippecanoe129312
Madison106266
LaPorte96730
Howard94865
Kosciusko87812
Bartholomew86747
Floyd86150
Marshall80523
Monroe78432
Vigo77913
Delaware77752
Dubois72912
Noble71729
Boone71646
Hancock70239
Warrick61230
Jackson6075
Shelby57328
LaGrange57110
Grant53330
Dearborn52828
Morgan50135
Henry46720
Clinton4624
Wayne41010
White38411
Montgomery36721
Harrison36524
Lawrence35927
Decatur35332
Putnam3318
Daviess29620
Scott28110
Miami2792
Jasper2662
Greene25934
Franklin25116
Gibson2464
DeKalb2444
Jennings23312
Ripley2218
Steuben2173
Carroll2135
Fayette2097
Perry18913
Orange18824
Posey1840
Starke1817
Wabash1805
Wells1802
Fulton1752
Jefferson1752
Knox1711
Sullivan1631
Whitley1626
Tipton15516
Washington1531
Clay1505
Spencer1403
Randolph1345
Huntington1303
Adams1242
Newton12110
Owen1131
Rush1004
Jay970
Pulaski841
Brown762
Fountain762
Pike670
Blackford662
Benton640
Ohio636
Vermillion620
Switzerland590
Parke581
Martin530
Crawford500
Union420
Warren251
Unassigned0207

Ohio Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 106557

Reported Deaths: 3784
CountyConfirmedDeaths
Franklin19287533
Cuyahoga14120523
Hamilton10001262
Lucas5609324
Montgomery4619101
Summit3749225
Butler310569
Marion295645
Mahoning2665259
Pickaway241142
Stark1947142
Warren191440
Lorain188477
Columbiana170461
Trumbull1598112
Fairfield147334
Delaware139219
Licking139053
Clark123516
Lake116343
Wood111558
Clermont100011
Medina98836
Miami89339
Allen84246
Tuscarawas80614
Portage78264
Greene76512
Mercer67613
Richland63512
Belmont62926
Erie62630
Madison58710
Ashtabula58246
Wayne58160
Geauga56445
Ross5285
Darke44230
Sandusky42117
Hancock4153
Huron4145
Ottawa40827
Athens3662
Lawrence3340
Holmes3326
Auglaize2888
Union2801
Muskingum2651
Scioto2651
Seneca2454
Jefferson2403
Shelby2344
Preble2302
Putnam22117
Knox2199
Washington21222
Coshocton1999
Champaign1922
Morrow1882
Hardin18312
Crawford1815
Clinton1806
Logan1742
Highland1712
Perry1693
Fulton1601
Ashland1593
Wyandot1589
Defiance1574
Brown1532
Williams1393
Fayette1270
Henry1252
Hocking1239
Guernsey1217
Carroll1155
Monroe9618
Gallia852
Pike810
Jackson790
Paulding740
Van Wert732
Adams682
Meigs660
Morgan320
Vinton322
Harrison261
Noble190
Unassigned00
Fort Wayne
Clear
84° wxIcon
Hi: 87° Lo: 65°
Feels Like: 87°
Angola
Clear
84° wxIcon
Hi: 86° Lo: 64°
Feels Like: 86°
Huntington
Few Clouds
82° wxIcon
Hi: 85° Lo: 65°
Feels Like: 85°
Decatur
Clear
84° wxIcon
Hi: 86° Lo: 65°
Feels Like: 86°
Van Wert
Clear
84° wxIcon
Hi: 86° Lo: 65°
Feels Like: 86°
Weekend Storm Chances
WFFT Radar
WFFT Temperatures
WFFT National

Community Events