The US Bankruptcy Court for the Southern District of New York has approved US retailer Sears Holdings’ first day motions for its voluntary Chapter 11 restructuring.

The retailer filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code yesterday. This approval is expected to improve the company’s liquidity position and allow it to continue business operations throughout the financial restructuring process.

The court authorised the company to access its $300m senior priming debtor-in-possession (DIP) financing from its senior secured asset-based revolving lenders.

“We look forward to continuing to engage in productive discussions with our creditors and other stakeholders to pursue a plan of reorganisation.”

In addition, the company was authorised to continue paying employee wages and benefits, as well as to honour member programmes such as warranties and promotions.

Sears Holdings’ chief financial officer Robert A. Riecker said: “The court’s approval of our first day motions is an important step forward in our financial restructuring process, which will allow the company to continue operating in the normal course and provide our customers and members with trusted service.

“Our stores, online and mobile platforms, and related businesses are open and we continue to offer our customers and members the brands and products they want.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

“We look forward to continuing to engage in productive discussions with our creditors and other stakeholders to pursue a plan of reorganisation as expeditiously as possible.”

Sears Holdings aims to establish a sustainable capital structure, continue streamlining its operating model and grow profitably through this move.