US-based department store chain Sears Holdings (SEC) is planning to close 80 more stores by late March this year as part of the company’s sale process.
The stores join the list of the previously announced 40 store closures. The retailer expects to commence liquidation this month, reported insideretail.com.au.
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The retailer announced last month that it will assume a charge of $443m from the permanent closure of its 142 stores.
Along with its subsidiaries, SEC filed voluntary petitions for relief under Chapter 11 in October last year to establish a sustainable capital structure, continue streamlining its operating model, and grow profitably.
The US Bankruptcy Court for the Southern District of New York also approved the retailer’s first day motions for its voluntary Chapter 11 restructuring, as well as authorised it to access its $300m senior priming debtor-in-possession (DIP) financing from its senior secured asset-based revolving lenders during the same month.
The sale process will be conducted under Section 363 of the US Bankruptcy Code and has received approval from the company’s restructuring committee featuring its independent directors.
In November, the department store chain received approval from the US Bankruptcy Court for the Southern District of New York to raise $350m in bankruptcy financing.
In December last year, the company’s chairman Eddie Lampert submitted a $4.6bn bid through his hedge fund ESL Investments to save the firm from bankruptcy, which will save 50,000 jobs out of the total 68,000.
