Sears, which once held the spot of the largest retailer in the world, is now dealing with the reality of bankruptcy. The company may be filing by the end of the week, sources report.
According to People, Sears had reportedly reached out to several banks, seemingly in preparation of a potential bankruptcy filing. Additionally, new information, released on Tuesday, revealed that Sears was seemingly preparing for a filing by also hiring M-III Partners.
The company has, reportedly, failed to make a profit since 2010. Over the years, the debt has continued to grow, with Sears now faced with a $134 million payment that must be payed by Monday, October 15. This unfortunate news has also led to Sears’ stock dropping 32 percent, down to 40 cents a share.
Some experts remain optimistic, with CNBC stating that Sears could possibly avoid filing bankruptcy. They believe CEO Eddie Lambert, who has kept the retailer afloat with his own money, may choose to restructure the company to avoid bankruptcy. There is also a possibility that Sears may file a Chapter 11 bankruptcy, which would allow them to cut debt and attempt to re-brand as a smaller, more profitable company.
Will this news affect your shopping at all? Do you think Sears will pull a Toys “R” Us and attempt to relaunch and re-brand themselves?
To read more about the company, and the financial obstacles they face, click here.