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The latest Sears filing indicated that it had $ 193 million in cash as of August 4, the end of its last quarter. The company also has $ 269 million from lenders, according to figures released Sept. 13.
If little cash was available, it would be very difficult for Sears to repay a debt of $ 134 million due Monday. In addition, Sears must also pay its current suppliers and employees and build inventory before the holidays.
All signs indicate a bankruptcy filing in the coming days. Sears shares have fallen more than 50% in the past five days to about 35 cents a share.
Businesses that declare bankruptcy usually negotiate a special type of loan to stay in business during the bankruptcy process. There are several reports of Sears negotiating for this type of financing, but the negotiations do not seem to be going well.
If Sears files a Chapter 11 complaint, the company could try to stay in business, using the court process to free itself from debt and unaffordable leases. It could try to become a profitable business. But the retail landscape is cluttered with brands that have attempted to reorganize in the bankruptcy process and have liquidated their businesses, such as RadioShack, Toys "R" Us and Sports Authority.
Sears and Kmart merged to form Sears Holdings in 2005, with 3,500 US stores. A long series of store closures left it with less than 900 today.
In July, Sears closed its last store in Chicago, which was once his hometown. The company recently announced the closing of 46 other stores that will take place just before the start of the holiday shopping period.
Sears and Kmart had 89,000 employees as of February 3 this year, according to a company ranking.
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