Categories LATEST, Retail

Sears stock plunges 25% as it nears possible bankruptcy

Shares of Sears Holdings (SHLD) plummeted on Wednesday on reports that the struggling retailer is expected to file for Chapter 11 Bankruptcy Protection in a few days. Wall Street Journal reported that the company had hired investment and advisory firm M-III Partners to prepare a bankruptcy filing. The stock nosedived more than 25% before the bell on Wednesday.

On Tuesday, Sears appointed Alan Carr, Managing Member and CEO of Drivetrain, to its Board of Directors. Carr has significant experience as a principal, investor and advisor leading complex financial restructurings, as well as serving as a director of reorganized businesses in the US and Europe.

Sears has to pay $134 million of debt, which is due on coming Monday

Sears has been encountering substantial obstacles to report profitability for many years, hurt by the enormous changes in the retail environment caused by the increasing trend of online shopping. To overcome the challenges, Sears has closed unprofitable stores, liquidated inventory, and reduced headcount.

The company has been selling properties where it can obtain favorable prices and repaying the associated debt. Sears has also been seeking partners who can expand the reach of its major brand assets and reducing costs.

You may also like: Can CEO Lampert save Sears?

Apart from these headwinds, the company has been impacted by its long-term pension obligations. The retailer has contributed nearly $2 billion in last five years and over $4.5 billion since 2005 to fund pension plans. Last month, Sears received a proposal from ESL Investments regarding certain liability management and real estate transactions.

The Hoffman Estates, Illinois-based firm has to pay $134 million of debt, which is due on coming Monday. The company has been not successful in reaching a deal with its CEO Eddie Lampert, who is also its biggest stakeholder to restructure its debts and sell assets. It is expected that Sears will not be able to pay the debt on the due date.

Sears stock, which hit a new yearly low on Tuesday, had lost 83% so far this year and 92% in the past 12 months. The stock continued to bleed in the morning trading session.

Eight retailers that could go bankrupt this year

 

Most Popular

United Parcel Service (UPS) seems on track to regain lost strength

Cargo giant United Parcel Service, Inc. (NYSE: UPS) ended fiscal 2023 on a weak note, reporting lower revenues and profit for the fourth quarter. The company experienced a slowdown post-pandemic

IPO Alert: What to look for when Boundless Bio goes public

Boundless Bio is preparing to debut on the Nasdaq stock market this week, and become the latest addition to the list of biotech firms that have launched IPOs this year.

Nike (NKE) bets on innovation and partnerships to return to high growth

Sneaker giant Nike, Inc. (NYSE: NKE) has been going through a rough patch for some time, with sales coming under pressure from weak demand and rising competition. Post-pandemic, the company

Comments

  1. Pingback: Reba Fleurantin
  2. Pingback: Chirurgie Tunisie
  3. Pingback: FUE
  4. Pingback: Future University
  5. Pingback: fue
  6. Pingback: Elective Courses
  7. Pingback: distance education
  8. Pingback: pull up
  9. Pingback: liv pure
  10. Pingback: Fiverr Earn
  11. Pingback: Fiverr Earn
  12. Pingback: Fiverr Earn
  13. Pingback: Fiverr Earn
  14. Pingback: Fiverr Earn
  15. Pingback: redboost mediprime
  16. Pingback: fiverrearn.com
  17. Pingback: fiverrearn.com
  18. Pingback: fiverrearn.com
  19. Pingback: fiverrearn.com
  20. Pingback: isla mujeres
  21. Pingback: seo in Australia
  22. Pingback: smartphones
  23. Pingback: future university
  24. Pingback: seo
  25. Pingback: frenchie puppies
  26. Pingback: Fiverr.Com
  27. Pingback: Fiverr.Com
  28. Pingback: frenchies texas
  29. Pingback: fue
  30. Pingback: six sigma
  31. Pingback: House moving
  32. Pingback: Storage solutions
  33. Pingback: Packing services
  34. Pingback: Classic Books 500
  35. Pingback: FiverrEarn
  36. Pingback: FiverrEarn
  37. Pingback: Media
  38. Pingback: Coach
  39. Pingback: FiverrEarn
  40. Pingback: Sefton Play Club
  41. Pingback: pupuk organik
  42. Pingback: partners
  43. Pingback: tupi tea
  44. Pingback: fue
  45. Pingback: Betting
  46. Pingback: FiverrEarn
  47. Pingback: live sex cams
  48. Pingback: live sex cams
  49. Pingback: FiverrEarn
  50. Pingback: FiverrEarn
  51. Pingback: FiverrEarn
  52. Pingback: FiverrEarn
  53. Pingback: wix login
  54. Pingback: education
  55. Pingback: landscape
  56. Pingback: Kuliah Termurah
  57. Pingback: cheap sex cams
  58. Pingback: fullersears.com
  59. Pingback: live sex cams
  60. Pingback: rare breed-trigger
  61. Pingback: 늑대닷컴
  62. Pingback: nang sydney
  63. Pingback: 918kiss
  64. Pingback: หวย24
  65. Pingback: Cosmetics
  66. Pingback: pg slot
  67. Pingback: AI Attorney
  68. Pingback: cybersécurité
  69. Pingback: catskills hotel
  70. Pingback: megagame
  71. Pingback: 25-06 ammo
  72. Pingback: 38/40 ammo
  73. Pingback: 6mm arc ammo
  74. Pingback: itsMasum.Com
  75. Pingback: itsMasum.Com
  76. Pingback: nang tanks
  77. Pingback: Plombier Tours

Comments are closed.

Tags

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top