Sears May File For Bankruptcy Ahead Of Black Friday 2018

Posted: Oct 11 2018, 12:32am CDT | by , in News | Black Friday 2018

 

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Sears May File for Bankruptcy ahead of Black Friday 2018

The long-troubled retail chain Sears is reportedly short on cash ahead of crucial Holiday shopping season.

For retailers, the Holiday season is the most important time of the year to make revenue. Money troubles ahead of the biggest shopping season of the year can be devasting. Sears is reportedly having cash flow issues as its major shareholder is not planning to bail the long-struggling retailer out this time.

According to the Wall Street Journal, Edward Lampert, the hedge-fund manager who controls Sears Holdings Corp. will not lend the company money to pay back a $134 million debt due October 15. The WSJ report cites people familiar with the matter as a source.

Sears Holdings needs to stock its remaining Kmart and Sears stores with products for the Holiday shopping season. This requires a major capital investment, especially as suppliers want upfront payment.

According to the sources of the WSJ, Sears is in talks with banks to raise several hundred million dollars of financing for a potential bankruptcy filing that could come in the next days. Sears situation sounds very similar to the ToysRUs debacle a year ago. A chapter 11 bankruptcy filing does not mean that Sears and Kmart stores are shutting down. Under chapter 11, the retailer has a chance to restructure and try to turn things around.

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<a href="/latest_stories/all/all/2" rel="author">Luigi Lugmayr</a>
Manfred "Luigi" Lugmayr () is the founding Chief Editor of I4U News and brings over 25 years experience in the technology field to the ever evolving and exciting world of gadgets, tech and online shopping. He started I4U News back in 2000 and evolved it into vibrant technology news and tech and toy shopping hub.
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