Sears Plans to Close 50-80 More Stores

Struggling retailer Sears is planning on shuttering 50 to 80 more stores according to sources familiar with the situation.

The sources spoke to CNBC and have said that Sears told the bankruptcy court recently that it plans to close more stores.

It was earlier this month that the company’s chairman, Eddie Lampert, unveiled his $4.6 billion proposal to save Sears by buying the company out of bankruptcy through his hedge fund, ESL Investments.

If Lampert is not successful at buying the company, Sears would likely have to liquidate and sell itself off in parts.

Sears’ advisors told the bankruptcy court judge this week that the company is already planning to close a number of stores and solicit liquidation bids as a protection. This is in case Lampert’s plan falls apart.

With the store closures it would take Sears to around 400 stores while Lampert said he wants to buy around 500 stores.

A spokesperson for ESL Investments said to CNBC, “ESL Investments is working around the clock to try to keep Sears in business with a going concern proposal that would save tens of thousands of jobs and provide severance protections for eligible workers.”

Disclaimer: We have no position in Sears Holdings Corp. (OTCMKTS: SHLDQ) and have not been compensated for this article.