Sears Holdings granted court OK of store-closing sale procedures

By Caroline Salls

Pittsburgh, Nov. 20 – Sears Holdings Corp. received court approval of the procedures for its store-closing sales, according to an order filed Monday with the U.S. Bankruptcy Court for the Southern District of New York.

As previously reported, Sears said it intends to reorganize around a smaller store platform of EBITDA-positive stores.

Sears said it will also close 142 unprofitable stores near the end of the year.

The closure of 142 stores is in addition to the previously announced closure of 46 unprofitable stores that is expected to be completed by November, the company said.

Abacus Advisors Group LLC is serving as the liquidation consultant. Abacus may subcontract to other entities or otherwise obtain support for the liquidation sales, including from Tiger Capital Group, LLC, provided that the subcontracting will be at no additional cost to the Sears debtors’ estates.

Sears said in the closing-sale procedures motion that the liquidation of the assets at the initial closing sales is expected to yield roughly $42 million in net proceeds, which will be used to pay down its debtor-in-possession ABL facility and to fund the company’s Chapter 11 cases.

Sears will pay budgeted expenses of the liquidation consultant, including $2,450 per week plus travel costs and bonuses as a supervisor’s fee, capped at $1,225 per week per supervisor.

In addition, the company will pay a monthly inventory fee of $100,000 if there are 20 or fewer active closings in any given month, graduated up to a maximum of $140,000 if there are 51 or more active closings in a given month.

Sears is a retailer based in Hoffman Estates, Ill. The company filed bankruptcy on Oct. 15 under Chapter 11 case number 18-23538.

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