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Sears Bankruptcy Could Be Just Days Away

William White

It looks like we’ll finally be seeing a Sears bankruptcy after talk for years about it.

Sears Bankruptcy Could Be Just Days Away

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There are a few major signs that Sears (NASDAQ:SHLD) is seriously looking at bankruptcy in the next few days. The first is the hiring of a new Director for its Board. This Director is Alan Carr. Carr is the CEO of Drivetrain, which is a restructuring firm.

Another one of the big signs that a Sears bankruptcy is on the way comes from recent reports. According to these reports, the retail company has hired M-III Partners to act as one of its advisors. M-III Partners is a firm that has a specialty in helping companies through bankruptcies.

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The final bit of news that may point toward a looming Sears bankruptcy is a massive stock selloff from one of its major investors. Fairholme Capital Management’s Bruce Berkowitz recently sold 142,000 shares of Sears stock. This represents 8% of his stake in the company He sold the shares for between 59 cents to 65 cents each, reports CNN Business.

Sears CEO Eddie Lampert has been looking for ways to save the company, but without much luck. He introduced a restructuring plan in late September to reduce a large portion of its debt, but investors didn’t react positively to the news.

Sears has also been closing down stores over the last couple of years in an effort to return to profitability. This has resulted in a large amount of both Sears and Kmart stores closing their doors lately.

SHLD stock was down 37% as of Wednesday morning and is down 84% year-to-date.

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As of this writing, William White did not hold a position in any of the aforementioned securities.

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