Sears Holdings Corp. Chairman Eddie Lampert is in the process of finding a financing partner for the company's bankruptcy filing. According to Reuters, Lampert's private equity firm, ESL Investments, has talked with investment firm, Cyrus Capital Partners LP, about sharing the financial burden of a $300 million loan.
some of Sears' vendors have distanced themselves, states Bloomberg.
Vendors have also stopped shipments to Sears, which became the latest
former brick-and-mortar retail giant to file for Chapter 11 bankruptcy
earlier this month.
Some suppliers are asking for better payment
terms including advanced payments, but Sears is looking for terms that
will be more in their favor, according to Bloomberg.
Just one day
after Sears' bankruptcy filing, swimwear vendor In Gear Fashions filed a
lawsuit in Cook County Circuit Court against Sears, Lampert, ESL and
Sears' subsidiary Kmart, according to the Chicago Sun Times.
The swim vendor claims Sears owes them nearly $840,000 and is in breach
of contract. In Gear Fashions states payments stopped Oct. 12 despite
more than $182,000 being owed over four installments between Sept. and
Sears has not turned a profit since 2011; however, in a
company blog updated in June 2017, Lampert said, "Across our entire
vendor base, we have always met our payment obligations and are
confident that the steps we are taking to improve our financial strength
and reduce our operating losses will ensure that we will continue to be
a strong business partner for many years to come."
The post was in reference to the annual stockholders meeting and an issue with power tool manufacturer One World.
-Michael Miller, managing editor