Headlines

Sears Proposes Restructuring

The proposal is an attempt to help the retailer avoid bankruptcy

Published

6 years ago

September 26, 2018

Sears (Hoffman Estates, Ill.) has submitted a proposal to restructure the company in a move to avoid filing Chapter 11 bankruptcy.

According to Springfield News-Sun, the proposal from Chief Executive Officer Eddie Lampert's ESL Investments hedge fund includes closing unprofitable stores, selling properties, seeking partners and reducing operating expenses. For instance, the company would look to sell about $1.5 billion in real estate and about $1.75 billion in other assets, including its Kenmore appliance brand.

Those changes are expected to reduce the company’s debt by about 80 percent from $5.6 billion. The proposal is timely given that the company has a $134 million loan payment that is due October 15.

MasterClass: ‘Re-Sparkling’ Retail: Using Store Design to Build Trust, Faith and Brand Loyalty

HOW CAN WE EMPOWER and inspire senior leaders to see design as an investment for future retail growth? This session, led by retail design expert Ian Johnston from Quinine Design, explores how physical stores remain unmatched in the ability to build trust, faith, and loyalty with your customers, ultimately driving shareholder value.

Presented by:
Ian Johnston
Founder and Creative Director, Quinine Design