Sears is in denial about bankruptcy
Sears is goin’ broke… however, put in technical terms, the company faces “significant near-term constraints” in its cash position. The company owes $134 million in debt, and those payments all come due in October. CEO Eddie Lampert has proposed that Sears sell the Kenmore appliance brand (to him), along with most everything else.
Don’t say bankruptcy… because Lampert was undoubtedly careful not to. However, if you know what bankruptcy entails – Sears is about to file for bankruptcy. Interestingly enough, Lampert’s hedge fund holds much of Sears debt, which is why the CEO is open to buying Kenmore and the company’s home improvement business.
Lampert has a conflict of interest… that is pretty apparent. However, decisions to buy and sell aren’t really up to him – they are up to the independent board members of the company. However, Sears issued a statement saying they are “pursuing” the plan but makes no guarantees – so slow your roll there, Lampert.