As the Oct. 15 date looms for a $134 million debt payment, Sears Holdings could file for bankruptcy, according to several media reports. It has retained boutique advisory firm M-III Partners LLC to prepare the filing, according to the Wall Street Journal.
In August the company announced the closure of 46 more stores in an ongoing effort to streamline operations, strengthen its capital position and focus on the best-performing stores. This came two months after Sears called for the closing of 72 stores, saying it had identified a total of 100 unprofitable locations.
But that may not have been enough to stem the bleeding. USA Today reports that Sears has failed to work out a deal with its CEO and largest shareholder, Eddie Lampert, to restructure its debt and sell its assets.
Sears has contacted investors in an effort to secure financing to operate in bankruptcy, according to USA Today and other reports. The company’s shares were down on Wednesday by 26% to a penny stock listing of 44 cents in pre-market trading.