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Sears Files for Chapter 11; Lampert Steps Down as CEO

Sears Holdings filed for Chapter 11 bankruptcy early Monday morning ahead of $134 million in debt coming due, and Eddie Lampert has stepped down as CEO. He will remain chairman of the board.

The company said it would close another 142 stores. A roster of specific locations was not immediately available.

The company has received commitments for $300 million in senior priming debtor-in-possession financing from its senior secured asset-based revolving lenders. It’s negotiating a $300-million subordinated DIP financing with Lampert’s ESL Investments Inc.

In a statement, Lampert said that although progress has been made in transforming the business, “addressing the company’s immediate liquidity needs has impacted our efforts to become a profitable and more competitive retailer.” The Chapter 11 process will give Sears Holdings “the flexibility to strengthen its balance sheet, enabling the company to accelerate its strategic transformation, continue rightsizing its operating model and return to profitability.”

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About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).

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