Sears files for bankruptcy
The retailer said all stores and online platforms will continue to operate as normal
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.US retailer Sears has filed for Chapter 11 bankruptcy, seeking protection from its creditors, as it attempts to restructure the business after failing to make a crucial $134m (£103m) debt repayment due on Monday.
The group has total debts of more than $5.5bn, and its biggest creditor is chief executive Eddie Lampert.
The company, which also owns Kmart, also announced plans to close 142 shops by the end of the year, but said all other stores and online and mobile platforms will remain open, offering “a full range of products and services” while the bankruptcy progresses.
The group said it had received commitments for $300m debtor-in-possession financing, and is negotiating a further $300m in junior debtor-in-possession funds.
Mr Lampert, who is also chairman of Sears Holdings, said: "Over the last several years, we have worked hard to transform our business and unlock the value of our assets.
“While we have made progress, the plan has yet to deliver the results we have desired, and addressing the company's immediate liquidity needs has impacted our efforts to become a profitable and more competitive retailer.”
Mr Lampert said the Chapter 11 process would give Sears the “flexibility to strengthen its balance sheet, enabling the company to accelerate its strategic transformation, continue right sizing its operating model, and return to profitability”.
He added: “Our goal is to achieve a comprehensive restructuring as efficiently as possible, working closely with our creditors and other debtholders, and be better positioned to execute on our strategy and key priorities."
Subscribe to Independent Premium to bookmark this article
Want to bookmark your favourite articles and stories to read or reference later? Start your Independent Premium subscription today.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments