Sears Secures Financing to Remain Open Through Christmas
As the Sears deathwatch continues, a new report from CNBC alleges that the company is nearing a deal with its lenders to remain open through the holiday shopping season. It’s expected that Sears Holdings could file for bankruptcy as early as this weekend or early next week, but the company is close to securing some $300 to $500 million in financing, which would allow the retailer to remain open until at least Christmas.
Sources familiar with the matter told CNBC that such a deal with its lenders is contingent on a number of factors, which include shuttering a number of its stores immediately. The exact number of closures is still being negotiated, they said. Sears currently operates around 900 locations that support some 90,000 workers.
The hope for Sears, if they are to remain open, is that they could continue to operate and sell off existing inventory through the holidays, while also searching for someone—or someones—to buy the company while they’re in bankruptcy.
However, the recent track record of retail bankruptcy filings would not be in Sears’ favor. Retailers including Toys R Us, hhgregg, and Circuit City, among others, entered bankruptcy with similar hopes of emerging with a new buyer. All of those brands ultimately went the way of liquidation.
The individuals who spoke with CNBC did so anonymously because of the confidential nature of the information, and they cautioned that nothing has been finalized.
Earlier this week, it was reported that Sears was prepping itself for a much-anticipated bankruptcy filing. The company held an emergency meeting with these same lenders on Wednesday in an effort to secure emergency funding for the filing. The rush to get that financing is due to a $134 million debt repayment that is due this Monday.