Being an unsecured creditor of Sears (SHLD) right now is not a good place to be.
The 125-year old former retail icon filed for chapter 11 bankruptcy protection early on Monday, crippled from years of losses and mounting debt. Sears plans to close about 142 money-losing stores by year end. The company operates 700 Sears and Kmart stores.
Sears lined up $1.875 billion in bankruptcy financing to extinguish its existing loans and keep the lights on at the chain through the holiday season. Embattled CEO Eddie Lampert will step down, but remain as chairman. Lampert reportedly has visions of leaving 400 of Sears most profitable locations open.
The Sears bankruptcy means that unsecured creditors, or suppliers and pensioners, will be last in line to get paid. Sears said in its bankruptcy filing that funds will be available to pay unsecured creditors after the secured ones such as the banks are made whole. But how much unsecured creditors will receive, if anything, is an unknown.
Here are five key unsecured creditors of Sears and how much they’re owed for their products:
- Whirlpool (WHR): $23.4 million
- Frigidaire: $18.6 million
- Cardinal Health (CAH): $13.9 million
- Samsung (005930.KS): $8 million
- Black & Decker (SWK): $5.9 million
Brian Sozzi is an editor-at-large at Yahoo Finance. Follow him on Twitter @BrianSozzi