Sears gets some breathing room

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Sears gets some breathing room

By Marianne Wilson - 11/28/2018
Sears Holding Corp. will remain in business through the holidays.

The embattled retailer won court approval for $350 million in bankruptcy financing that will keep it up and running through the holidays while it attempts to reorganize. Sears reached the deal with Cyrus Capital Partners LP just before a hearing was set to start in U.S. Bankruptcy Court for the Southern District of New York on the retailer’s debtor-in-possession financing arrangements, Reuters reported.

The loan adds to $300 million that banks provided Sears when it filed for bankruptcy protection in October, giving the retailer a total of $650 million in financing.

Sears has been closing unprofitable stores in the hopes of emerging from Chapter 11 with a streamlined portfolio of its most profitable locations. It is seeking bids for 505 stores by Dec. 5.

The retailer said it also needs help from shopping center owners, reported The Dallas Morning News, and is asking landlords for rent reductions to help it keep its profitable stores open.

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