retail news in context, analysis with attitude

The Wall Street Journal reports that Sears Holdings has hired “M-III Partners LLC to prepare a bankruptcy filing that could come as soon as this week,” though Sears also “continues to discuss other options and could still avert an in-court restructuring.”

Sears “has $134 million in debt due on Monday. Edward Lampert, the hedge-fund manager who is Sears’s chairman, chief executive, largest shareholder and biggest creditor, could rescue the company, as he has done in the past by making the payment.” But, Lampert has been pushing for “a broader restructuring that would include shaving more than $1 billion from Sears’s $5.5 billion debt load, selling another $1.5 billion of real estate and divesting $1.75 billion of assets, including the Kenmore appliance brand, which he has offered $400 million to buy himself.”
KC's View:
At this point, a Sears bankruptcy will be the least surprising “news” story that I can imagine.