Sears gets a little more time to stay in business

Article Image

Sears has won some more time to save itself. But not a lot more time.At a bankruptcy court hearing Th...

Posted: Nov 15, 2018 12:15 PM

Sears has won some more time to save itself. But not a lot more time.

At a bankruptcy court hearing Thursday, Judge Robert Drain approved Sears' plan to auction off about 500 stores. The auction is central to the company's mission to remain in business. Sears intends to use funds from the sale for its operations, and it will pay rent to the stores' buyers so they can stay open.

A committee of Sears' creditors had objected to the plan and argued that the company should immediately start the process of going out of business to limit its ongoing losses.

Judge Drain said he will hold another hearing a week before Christmas to consider whether to go ahead with Sears' effort to stay in business or start the process to close all its remaining stores. Drain said it wasn't realistic to start a liquidation process immediately.

"You can't do a GOB [going out of business] plan for a company this big by snapping your fingers," he said. "Let's come back to court [in December] and see what the lay of the land is."

Sears' attorneys conceded was a chance the company might not be able to survive.

"We recognize we have a tough path ahead of us to save the company," said Sears attorney Ray Schrock. "We're not blind to that fact."

Schrock said the upcoming holiday shopping season is a crucial period for Sears, and the company believes it will at least be able to break even in the fourth quarter.

The creditors' attorney expressed doubts that the company will be able to stay in business. But he said they could live with waiting until December for a decision on Sears' future.

Sears also disclosed in a filing late Wednesday that it has arranged for an additional $350 million loan to fund operations during the bankruptcy process. That loan is a crucial component of the company's ability to stay in business, according to a filing the company made on the first day of the bankruptcy process, but it has taken a month to lock-up the funding.

The loan is from Great American Capital Partners, rather than ESL, the hedge fund controlled by Sears Chairman Eddie Lampert. When Sears first filed for bankruptcy, it said that it anticipated the loan would come from ESL, but creditors have objected to a the series of insider deals between Sears and Lampert.

Oregon Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 4086

Reported Deaths: 151
CountyConfirmedDeaths
Multnomah110359
Marion93125
Washington71517
Clackamas30411
Deschutes1210
Linn1159
Umatilla1143
Polk9811
Yamhill697
Lane672
Jackson650
Benton555
Clatsop450
Klamath410
Malheur330
Coos310
Douglas250
Jefferson250
Josephine251
Wasco211
Columbia160
Hood River130
Morrow120
Lincoln100
Crook60
Curry60
Union60
Tillamook60
Wallowa20
Lake20
Sherman10
Harney10
Grant10
Baker10
Unassigned00
Eugene
Scattered Clouds
71° wxIcon
Hi: 86° Lo: 54°
Feels Like: 71°
Corvallis
Clear
69° wxIcon
Hi: 86° Lo: 53°
Feels Like: 69°
Roseburg
Clear
80° wxIcon
Hi: 90° Lo: 57°
Feels Like: 80°
North Bend
Few Clouds
56° wxIcon
Hi: 64° Lo: 52°
Feels Like: 56°
KEZI Radar
KEZI Temperatures
KEZI Planner

LATEST FORECAST

Community Events