Sears filed for bankruptcy protection on Oct. 15, after years of struggles, and now its unsecured creditors have requested that a bankruptcy court deny Sears’ request to pursue store sales to stay afloat.
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As originally reported by Bloomberg, the unsecured creditors said in a court filing that the company’s current bankruptcy plan amounts to “an unjustified and foolhardy gamble with other people’s money.” The group believes that the money that the company would burn through staying in operation long enough to allow an asset sale should instead go to creditors. They say the amount of money that the company would burn through in this process could be as much as $500 million.
The creditors also critiqued the company’s plan to auction off its highest-performing stores as “nothing more than wishful thinking.”
Sears will formally present its bankruptcy plan and financing deals in court on Thursday.
As reported by Reuters Wednesday, Sears is finalizing a deal with financial firm Great American Capital Partners and other lenders for $350 million in bankruptcy financing, according to people familiar with the matter.
Reportedly, Sears needs more money to stay afloat through the holiday season while it reorganizes.
Sears declined to comment to FOX Business.