From largest US retailer to possible bankruptcy, Sears lines up emergency financing for potential filing
There's a chance we may be scratching Sears and Kmart off our holiday shopping lists this year. Oh how the mighty have fallen.
Quote:
|
Sears is fighting for its life. Sears was the Amazon of the 1930s. Here's where the retailer is today.
|
Quote:
Sears Holdings has contacted banks in recent days to arrange the financing necessary to file for bankruptcy after 125 years in business, people familiar with the situation told CNBC.
The stock plummeted 32 percent, to 40 cents a share, in Wednesday's premarket trading after the report.
The so-called "debtor-in-possession" loan, which companies need to have enough liquidity to keep running the business during bankruptcy, is the clearest sign yet that the department store chain may finally file after years of losses. Sears has a $134 million debt payment due Monday that it previously said it may not be able to cover.
A bankruptcy filing is not yet definite and still could be averted. Sears' CEO, Eddie Lampert, has kept the company afloat through financial maneuvering and pouring his own money into the company. He may again choose to do so.
|