Quote:
Originally Posted by Red Bread
Realize there is a huge difference in Ch11 and Ch7 bankruptcies. They should be able to restructure under bankruptcy and emerge as a viable company. Not that Ch11 is a guaranteed path to success...
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This is correct, although Sears will likely emerge from BK as a much smaller private company. I believe as part of the ReOrg, they will be closing around 400 of their 600 Sears & K-Mart stores.
I wouldn't be surprised to see them shutter nearly all of the K-Mart stores, as they are the ones with the largest losses in order to help service some of the debt that is being held under the Sears umbrella.
Honestly, though, I don't see how Sears can offer a viable business model going forward with their current plans.