(Reuters) - Sears Holdings Corp (SHLD.O) is preparing to file for Chapter 11 bankruptcy protection as early as Friday, sources said on Wednesday, casting doubt over the future of what was once the world’s largest retailer and sending its shares to a record low.
Negotiations between Sears Chief Executive Officer Eddie Lampert and the company’s special board committee are at a standstill over the committee’s refusal to approve Lampert’s rescue plan, the sources said. The committee is concerned it will be opening the company up to litigation, one source said.
Once also the largest U.S. retailer, Sears sold everything from toys to auto parts to mail-order homes and was a key tenant in almost every big mall across the United States. It has suffered in the last decade because it did not specialize and was overtaken by online competition from Amazon.com Inc (AMZN.O) and other retailers.
Sears shares were down 36 percent at 37 cents. The stock, which traded above $100 a decade ago, has fallen to less than $1 in the past year.
It warned in September for a second time that it could go out of business, hurt by falling foot traffic at its brick-and-mortar stores as customers shift online.
The Wall Street Journal late Tuesday said Sears hired boutique advisory firm M-III Partners LLC to help prepare a bankruptcy filing before a $134 million debt payment comes due on Monday, citing people familiar with the matter.
Billionaire investor Lampert wants to restructure the debt without filing for bankruptcy protection because he views bankruptcy as risky for retailers, the paper said.
The Journal also
