Sears Holdings, the parent company of Sears and Kmart, faces an October 15 deadline to pay $134 million on its debt. CEO and primary shareholder Eddie Lampert told the company’s board that it was crucial it restructure more than $5 billion it owes “without delay,” according to a recent regulatory filing.
Investors are giving up hope on a deal. Sears Holdings (SHLD) stock plunged 28% Wednesday. The stock has lost two-thirds of its already depressed value since Lampert announced the attempt to restructure the company’s debt on September 24.
Lampert has been willing to pour additional cash into the company in return for debt backed by real estate or other hard assets. For example, he recently offered to buy its Kenmore appliance brand for $400 million. But the company’s independent directors have yet to accept that offer or take action on his proposal to restructure Sears’ debt he says the company can no longer afford.