Sears Holdings plans to file for bankruptcy protection after midnight inside the East Coast, culminating the collapse of what was once America’s largest retailer, people familiar with the situation tell CNBC.
As part of the bankruptcy plan, Sears will immediately close roughly 150 of its stores, people familiar with the matter have said. the idea has approximately 700 stores, one of the people said.
the idea is usually unclear how the closures would likely impact Sears’ workers, which totaled roughly 0,000 in February 2018.
Sears will aim to stay in operations through the holidays, during which the idea will seek a buyer. of which buyer could include its CEO, Eddie Lampert, or others of which wish to make a higher bid.
The retailer has secured roughly $500 million to support its holiday operations, the people said. As of Sunday evening, negotiations were ongoing, two of the people said.
The people, who requested anonymity because the information is usually confidential, cautioned no plan is usually definite until the retailer formally submits its bankruptcy paperwork. Sears did not immediately respond to comment.
Sears incorporates a $134 million debt payment due Monday the idea will not meet.
The retailer’s last profitable year was in 2010. the idea rang up less than $17 billion in sales in fiscal 2017, half of the roughly $40 billion in revenue the idea brought in 5 years earlier, according to FactSet.
Sears wasn’t immediately available for comment.