Sears explores bankruptcy filing even as CEO scrambles to avoid it

Edward Lampert has proposed selling $1.5B more in real estate in an attempt to save the beleagured retailer

National /
Oct.October 10, 2018 12:00 PM

Sears CEO Edward Lampert and a Sears store (Credit: Phillip Pesar via Flickr and Getty Images)

Sears Holdings is preparing for a possible bankruptcy even as CEO Edward Lampert continues his push to shrink the once-dominant retailer back to profitability.

Sears has hired advisers to prepare a possible bankruptcy filing that could come as early as this week, according to the Wall Street Journal. The move comes as the struggling chain faces a Monday deadline to make a $134 million debt payment.

Lampert’s efforts to keep Sears out of bankruptcy have included shedding hundreds of unprofitable stores: Sears and Kmart had some 3,500 locations when they merged under Lampert in 2005; now there are about 900 nationwide.

Last month he proposed a last-ditch effort to avoid bankruptcy by shaving more than $1 billion from Sears’ $5.5 billion debt load, in part by selling another $1.5 billion in real estate. The strategy worked before. In August, Sears made $2.7 billion selling more than 200 stores to Seritage Growth Properties, a real estate investment trust that was formed to convert former Sears and Kmart stores.

Sears has endured more than $11 billion in losses since 2011, and its annual sales have dropped nearly 60 percent in that period, to $16.7 billion. Analysts say it needs to raise more than $1 billion a year to stay afloat. [WSJ] — John O’Brien


Related Articles

arrow_forward_ios
From left: DL3 Realty’s Leon Walker, Discover’s Roger Hochschild, Mayor Lori Lightfoot, and 8560 South Cottage Grove Avenue. (DL3, Discover, Getty, Google Maps)
DL3 Realty signs Discover to big South Side lease
DL3 Realty signs Discover to big South Side lease
Blackstone’s Jonathan Gray and CenterPoint CIO Jim Clewlow with one of the properties, 225 Spring Lake Drive, Itasca (Getty, Linkedin, Google Maps)
Blackstone expands industrial reach with $151M Chicago buy
Blackstone expands industrial reach with $151M Chicago buy
(Arlington Park, Google Maps)
Churchill Downs looks to sell 326-acre Arlington Park race track
Churchill Downs looks to sell 326-acre Arlington Park race track
Chicago this week raised indoor dining to 40% of a venue's capacity. (iStock)
Filling up: Chicago boosts indoor dining capacity
Filling up: Chicago boosts indoor dining capacity
Photo illustration of the Silver Lake Country Club (Silver Lake CC, iStock/Illustration by Kevin Rebong for TRD)
Orland Park golf club hits market as residential redevelopment
Orland Park golf club hits market as residential redevelopment
Sterling Bay CEO Andy Gloor and Prudential Plaza (Getty)
Sterling Bay sues Tribune over $5M in skipped rent
Sterling Bay sues Tribune over $5M in skipped rent
Berkadia CEO Justin Wheeler with Moran & Co.'s Tom Moran (Getty)
Berkadia picks up longtime multifamily brokerage
Berkadia picks up longtime multifamily brokerage
The owner of Johnny’s IceHouse East wants to sell the 50,000-square-foot building. (Johnny's IceHouse via Facebook, iStock)
No more ice ice, baby: Indoor skating rink hits market as redevelopment opportunity
No more ice ice, baby: Indoor skating rink hits market as redevelopment opportunity
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...