According to a report from CNBC, department store chain Sears has begun proceedings to file for chapter 11 bankruptcy. The company has been in decline for years, losing customers to other franchises’ specialization and Amazon’s convenience.
Sears has not turned a solid profit since 2010, and is currently $134 million in debt due on October 15th. The CEO of the company, Edward Lampert, has been using funds from his own hedge fund to keep Sears afloat.
Lampert hopes to find a lender that can help shrink the company down to a profitable state, but due to the company’s overall poor financial performance, lenders have been difficult to come by. Stock shares of Sears are also at a notable low, with Tuesday’s market closing at 59 cents per. The actual bankruptcy filing is expected to occur by October 13th, 2018.
