Louisiana baby boomers may fondly recall paging through the Sears catalogues that would arrive at their doors on occasion in their childhoods. The department store mogul is reportedly hanging by a thread financially, and some say the company is in serious need of immediate debt relief. In fact, a hedge fund connected with ESL Investments Inc. has apparently loaned Sears more than $1 billion in the past several years.
As many others do when they’re in dire need of cash flow, Sears forged new alliances as well as sold off assets, including it’s famous brand name tools, Craftsman, to Stanley Black & Decker, Inc., which was said to be worth almost $1 billion. Sears currently has its Kenmore brands, and Home Services and Auto Centers businesses up for sale. The company did secure a helpful deal with MetLife, Inc., however, when it annuitized more than $500 million in pension liabilities.
That means that more than 50,000 Sears employees will now receive pension benefits through MetLife Inc. The company is apparently far from being able to keep its head above water though. Since last year, it suffered a drop of 23 percent in sales. When serious financial problems arise and times get tough, companies often need to seek third party assistance to come up with a viable plan to help avert permanent financial damage.
How Sears will ultimately resolve its need for debt relief remains to be seen. Those in Louisiana suffering similar financial problems can consult attorneys with bankruptcy law experience to explore their options. Since no two situations are the same and what works for one may party not for another, it’s often best to seek guidance from someone who can provide objective suggestions for restoring financial stability and staying afloat in the business world.
Source: thestreet.com, “Sears Is Facing a Colossal Problem That Might Ignite a Bear Raid“, Laura Berman, Aug. 24, 2017
