Sears Holdings Corp. filed for Chapter 11 bankruptcy on Monday with a plan to close 142 more stores, throwing into doubt the future of the century-old retailer that once dominated the U.S. malls but has withered in the age of Internet shopping.
The Chapter 11 filing to reorganise debts of the parent of Sears, Roebuck and Co. and Kmart Corp., follows a decade of revenue declines, hundreds of store closures, and years of deals by billionaire CEO Eddie Lampert in an attempt to turn around the company he bought in 2004.
The firm listed $6.9 billion in assets and $11.3 billion in liabilities in documents filed in the U.S. Bankruptcy Court in the Southern District of New York.
Stand-off
The bankruptcy filing was sparked by a stand-off between Mr. Lampert, the company’s biggest shareholder and lender, and a special board committee, over a rescue plan proposed by Mr. Lampert.
Under the bankruptcy plan, Mr. Lampert’s executive role will be replaced by a three-person committee, though he will remain as chairman of the board. Mohsin Meghji, a managing director of the M-III Partners corporate advisory firm, was appointed chief restructuring officer.
The fate of Sears will depend on the willingness of creditors and suppliers to keep it afloat.
