With a possible bankruptcy filing on the horizon, Sears Holdings is reportedly missing some vendor payments as several major lenders push for the struggling retailer to be liquidated, published reports on Thursday, October 11, indicated.
Citing information from three product suppliers, Reuters said that Sears has missed scheduled payments over the past couple of weeks. But it was not known if the missed payments were only with a handful of vendors or more widespread.
In addition, the Wall St. Journal reported Thursday that a group of lenders including Bank of America, Wells Fargo and Citigroup, are pushing Sears for a liquidation of assets through a Chapter 7 filing. The report cited sources close to the Sears matter.
The report indicated that the financial institutions are willing to provide debtor-in-possession financing, but only enough for the retailers to sell assets and inventory and to close stores.
On Wednesday, October 10, the Wall St. Journal reported that Sears Holdings hired M-III Partners LLC to assist in preparing a bankruptcy filing. In addition, Sears also recently added Alan Carr as an independent director to its board of directors. Carr has experience in, among other things, complex financial restructurings as well as serving as a director of reorganized businesses in the U.S. and Europe.