Sears Bankruptcy: Everything You Need to Know
Is Sears facing bankruptcy in the coming weeks? Leadership is taking drastic measures to avoid it, but what does it mean for shoppers?
The majority of America has shopped at Sears *sometime* in their life. For our younger crowd, it may be a distant memory in which you recall receiving a variety of Christmas gifts with a Sears receipt. However, those in their 30s and older (uh…we mean…wiser) might remember Sears differently. It was where you went to buy your appliances, winter clothes, tools, and even an every day birthday gift. So how did America’s most popular box store convert to the finance industry’s biggest debt?
is sears facing bankruptcy?
First, the store is facing banks who want major debts paid back. In fact, a handful of banks control a $1.5 billion asset-backed credit line, including receivables from customers who have recently purchased on credit. Why are banks suddenly so nervous? Because $134 million of that is set to be due next week (the 15th of October) and Sears has not reported earning any profits in seven years.
What's Next for Sears?
Mostly, all of us are really unsure what’s next for the once-popular store. Bankruptcy filings were expected, but it looks like the company’s leadership is attempting to liquidate as much as possible to avoid it. Think: selling the Kenmore brand, selling real estate, and obtaining emergency short-term financing to cover the original creditors.
Sears May survive
However, the company is doing everything it can to stay in business and keep stock prices stable through the holiday season. With 75 days or so left until Christmas, we understand why.
All that being said, if you have a Sears gift card hanging around in your wallet, we suggest cashing in ASAP.
Schedule a consultation with an experienced Nashville business lawyer
Is there is a topic that is particularly interesting to you? Tell us about it.
Topic Criteria & Submissions HERE
Are you interested in writing an article to be featured on COLLINS LEGAL | the blog? You’re in luck. We are accepting guest submissions.
Guest Submission Criteria & Instructions HERE
All information provided on this website is for general information purposes only and not intended as legal advice. Persons reading information found on this website should not act upon this information without seeking the advice of legal counsel. Said information on this website is not intended to create an attorney-client relationship. Receiving and/or viewing said information does not constitute an attorney-client relationship. Prior to acting on any legal information found on this website or otherwise, Collins Legal advises you to seek the advice of legal counsel.