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Beleaguered Sears nears financing deal to stay open until Christmas to stave off bankruptcy, says CNBC

The retail chain would need to close some of its stores immediately as part of the deal
Sears store.
The struggling retailer secures financing to stay open until Christmas

Troubled retailer Sears Holdings Corp (NASDAQ:SHLD) is close to a deal with lenders that should keep it alive through the Christmas holiday season, a report by CNBC said.

The goal for the once iconic retailer of appliances for American homes is to stay open until Christmas in the hope of finding a 'White Knight' buyer who can save Sears, which is teetering on the brink of a bankruptcy filing.

As part of the deal, Sears would close some of its stores immediately with the exact number being negotiated and the impact on its 90,000 workers uncertain, the report said.

The retailer is trying to initially raise $300 million to $500 million to support holiday operations and that amount could well increase over time, it added.

READ: Sears names new independent director amid report it is skipping paying vendors

Sears has not finalized a buyer for the business and will likely seek one after it files for bankruptcy.

Brick-and-mortar retailers such as Sears have fallen on hard times. The company's dominance a few decades ago mirrors that of Amazon.com Inc (NASDAQ:AMZN), which now sits astride as the behemoth of the US retail industry.

Shares of Sears were trading 25.31% higher at US$0.4287 by midday on Friday. On May 1, 2015, the shares traded at $42.95.

Reporting by Rene Pastor, contactable on [email protected]

 

 

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Article
January 11 2018

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