Sears files for Chapter 11 bankruptcy
Sears Holdings on Monday filed for Chapter 11 bankruptcy, following a last minute ditch effort from the U.S. department store retailer's CEO to contribute towards a financing package.
According to a court filing, Sears has listed assets in the range of $1 billion to $10 billion and liabilities in the range of $10 billion to $50 billion, as part of the bankruptcy process.
Reuters reported on Sunday that Sears CEO Eddie Lampert had stepped in to contribute towards a financing package of between $500 million and $600 million that the U.S. department store operator was close to securing at the close of the weekend, to fund operations during bankruptcy proceedings, quoting people familiar with the matter.
Lampert, who is also the company's largest shareholder, in a statement on Monday said that the Chapter 11 process would give the company greater flexibility and accelerate its "strategic transformation", something that has been impeded upon by the burden of focusing on the firm's "liquidity needs."
"Over the last several years, we have worked hard to transform our business and unlock the value of our assets," said Lampert. "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.
"The Chapter 11 process will give Holdings 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. 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.
"As we look toward the holiday season, Sears and Kmart stores remain open for business and our dedicated associates look forward to serving our members and customers. We thank our vendors for their continuing support through the upcoming season and beyond. We also thank our associates for their hard work and commitment to providing millions of Americans with value and convenience," he added.
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