HOFFMAN ESTATES, IL — Another once-dominant U.S. retailer could be preparing to declare bankruptcy soon. Financially struggling Sears Holdings Corp., the parent company for Sears and Kmart stores, has hired an advisory firm to formulate a restructuring plan that could be put into place later this week, according to The Wall Street Journal.
Representatives for M-III Partners, a New York-based advisory firm, have been seen recently at Sears’ Hoffman Estates headquarters, the report stated. The former retail giant also is trying to find a way to avert a Chapter 11 filing, the report added.
On Tuesday, Sears announced restructuring adviser Alan J. Carr, a managing member and CEO of Drivetrain, LLC, had joined its board of directors, according to a company statement. Sears CEO Edward S. Lampert praised Carr for his “deep experience as a director for companies that went through complex organizational change.”
“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 U.S. and Europe,” the retailer said.
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Sears faces crippling debt payments coming due Oct. 15 to the tune of $134 million. Last month, the company received a proposal from ESL Investments, the hedge fund managed by Lampert, to reduce its debt by 80 percent by selling real estate holdings and paying down loans.
In the spring, Sears announced that 72 more stores, including multiple Illinois locations, were shutting downin what was only the latest round of store closings for the chain.
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