Case Background

Sears Holdings Corporation and certain of its subsidiaries (collectively, the "Company") have filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of New York.  The Company intends to use this process to position it to establish a sustainable capital structure, continue streamlining its operating model and grow profitably for the long term.

The Company expects to move through the restructuring process as expeditiously as possible and is committed to pursuing a plan of reorganization in the very near term as it continues negotiations with major stakeholders started prior to the announcement.

The cases are pending before the Honorable Robert D. Drain, and are jointly administered under Case No. 18-23538.

Sears Holdings Corporation is a leading integrated retailer focused on seamlessly connecting the digital and physical shopping experiences to serve its members.  The Company operates through its subsidiaries, including Sears, Roebuck and Co. and Kmart Corporation, with full-line and specialty retail stores across the United States.  Sears Holdings is also home to Shop Your Way®, a social shopping platform offering members rewards for shopping at Sears and Kmart as well as with other retail partners. For more information, visit www.searsholdings.com.

For additional information about the restructuring process, please visit Sears Holdings’ restructuring website at: restructuring.searsholdings.com.

Important Information & Dates

Plan and Disclosure Statement

On April 17, 2019, the Debtors filed their Joint Chapter 11 Plan of Reorganization and the Disclosure Statement related thereto. The Bankruptcy Court will hold a hearing to consider approval of the Disclosure Statement on May 16, 2019.

Please click below to view all documents related to the Plan and Disclosure Statement:

Plan & Disclosure Statement  

Deadline to File Claims

The Bankruptcy Court has set the following deadlines for filing proofs of claim against the Debtors:

  • General Bar Date (all creditors other than Governmental Units): April 10, 2019 at 5:00 p.m. (Eastern Time)
  • Governmental Unit Bar Date: September 3, 2019 at 5:00 p.m. (Eastern time)

A copy of the Notice of Deadline for Filing Proofs of Claim (the “Bar Date Notice”) is available here.

  • The Bar Date Notice was mailed to all known parties with a relationship to the Debtors, including shareholders, customers, and current and former employees.
  • The fact that you have received the Bar Date Notice does not mean that you have a claim or that the Debtors believe that you have a claim.
  • The Bar Date Notice lists who must file a proof of claim, and who need not file a proof of claim.
  • Please read the Bar Date Notice carefully. You should consult an attorney if you have any questions, including whether you should file a proof of claim.
  • Prime Clerk is not permitted to provide legal advice, including advising as to whether or not you should file a proof of claim.

Click on "Submit a Claim" above to download a proof of claim form and for more information regarding filing a claim against the Debtors.

Answers to FAQs are available here.

Global Asset Sale Process

On November 11, 2018, the Court entered the Order Approving Global Bidding Procedures and Granting Related Relief  [ECF No. 816] (the “Global Bidding Procedures Order”) for a sale of the Debtors’ assets, including the “Go Forward Stores” on a going concern or liquidation basis.
 
On January 14, 2019, the Debtors commenced an auction for the sale of the Global Assets (the “Auction”). As announced on the record of the Auction, the Debtors, as directed by their restructuring committee, determined that the offer submitted by Transform Holdco, LLC (the “Buyer”), established by ESL Investments, Inc. to acquire all or substantially all of the Global Assets, was the highest or best offer for the Global Assets (the “Successful Bid”).
 
On January 18, 2018, the Debtors filed the Notice of Successful Bidder and Sale Hearing [ECF No. 1730] and attached a summary of the material terms of the Successful Bid as Exhibit A thereto.  The executed asset purchase agreement was attached as Exhibit B thereto and a proposed sale order attached as Exhibit C thereto.
 
Important Dates and Deadlines Related to the Global Asset Sale Process:

• January 26, 2019 (4:00 p.m. ET): Deadline to object to (i) the proposed Sale Transaction for a Successful Bidder, (ii) Debtors’ proposed Cure Costs for Proposed Assumed Contracts not included in any Stalking Horse Bid, (iii) the assumption of and assignment to a Successful Bidder of any Proposed Assumed Contracts or any Contracts or Leases that may later be designated by such Successful Bidder for assumption and assignment, and (iv) conduct of the Auction
• February 4, 2019 (10:00 a.m. ET): Commencement of the Sale Hearing
 
Please click below to view and download documents related to the Global Asset Sale Process:

Global Bidding Procedures Order
Notice of Filing of Global Bidding Procedures Process Letter
Motion for Approval of Global Bidding Procedures
Notice of Auction Results and Sale
Assumption and Assignment Notice
Supplemental Assumption and Assignment Notice
Schedules 1.1(m) – (p) to the Asset Purchase Agreement

Hearing on First Day Motions

A hearing on the Company's First Day Motions was held on October 15 at 2:00 p.m. (ET) before the Honorable Judge Robert D. Drain, United States Bankruptcy Court for the Southern District of New York, 300 Quarropas Street, White Plains, NY 10601.

A final hearing on certain of the First Day Motions was held on November 15, 2018 at 10:00 a.m. (ET).

Please click below to view and download the First Day Motions and the First Day Orders:

First Day Motions

First Day Orders

Dates

April
18

Omnibus Hearing

10:00 a.m. (ET)
May
16

Disclosure Statement Hea...

10:00 a.m. (ET)
May
21

Omnibus Hearing

10:00 a.m. (ET)
October
15
_____
November
20
12:00 p.m. (ET)

Auction on SRAC Medium Term Notes

Parties

Debtors' Counsel

Weil, Gotshal & Manges LLP

767 Fifth Avenue
New York, NY   10153
https://www.weil.com/
Phone: 212-310-8000
Fax: 212-310-8007
Ray C. Schrock, P.C.
Garrett A. Fail
Jacqueline Marcus
Sunny Singh

Debtors' Restructuring Advisors

M-III Partners, LP

130 West 42nd Street
17th Floor
New York, NY   10036
https://miiipartners.com
Phone: 212-716-1491
Fax: 212-531-4532
Colin M. Adams
Brian Griffith

Unsecured Creditors' Committee Counsel

Akin Gump Strauss Hauer & Feld LLP

One Bryant Park
New York, NY   10036
https://www.akingump.com/en/
Phone: 212.872.1000
Fax: 212.872.1002
Ira S. Dizengoff
Philip C. Dublin
Abid Qureshi
Sara L. Brauner

United States Trustee and Court Information

United States Bankruptcy Court

Southern District of New York
300 Quarropas Street, Room 248
White Plains, NY   10601
http://www.nysb.uscourts.gov
Phone: 914-467-7088


United States Trustee

U.S. Federal Office Building
201 Varick Street, Suite 1006
New York, NY   10014
https://www.justice.gov/ust-regions-r02
Phone: 212-510-0500
Fax: 212-668-2255
Paul Schwartzberg
Richard Morrissey

Debtors

Case Number
Debtor Name
Petition Date
18-23538 Sears Holdings Corporation October 15, 2018
18-23543 A&E Factory Service, LLC October 15, 2018
18-23544 A&E Home Delivery, LLC October 15, 2018
18-23545 A&E Lawn & Garden, LLC October 15, 2018
18-23546 A&E Signature Service, LLC October 15, 2018
18-23564 Big Beaver of Florida Development, LLC October 15, 2018
18-23582 BlueLight.com, Inc. October 15, 2018
18-23565 California Builder Appliances, Inc. October 15, 2018
18-23547 FBA Holdings Inc. October 15, 2018
18-23566 Florida Builder Appliances, Inc. October 15, 2018
18-23548 Innovel Solutions, Inc. October 15, 2018
18-23567 KBL Holding Inc. October 15, 2018
18-23554 Sears Home & Business Franchises, Inc. October 15, 2018
18-23568 KLC, Inc. October 15, 2018
18-23549 Kmart Corporation October 15, 2018
18-23539 Kmart Holding Corporation October 15, 2018
18-23576 Kmart of Michigan, Inc. October 15, 2018
18-23570 Kmart of Washington LLC October 15, 2018
18-23540 Kmart Operations LLC October 15, 2018
18-23571 Kmart Stores of Illinois LLC October 15, 2018
18-23572 Kmart Stores of Texas LLC October 15, 2018
18-23585 Kmart.com LLC October 15, 2018
18-23550 MaxServ, Inc. October 15, 2018
18-23573 MyGofer LLC October 15, 2018
18-23551 Private Brands, Ltd. October 15, 2018
18-23574 Sears Brands Business Unit Corporation October 15, 2018
18-23586 Sears Brands Management Corporation October 15, 2018
18-23583 Sears Brands, L.L.C. October 15, 2018
18-23584 Sears Buying Services, Inc. October 15, 2018
18-23552 Sears Development Co. October 15, 2018
18-23553 Sears Holdings Management Corporation October 15, 2018
18-23555 Sears Home Improvement Products, Inc. October 15, 2018
18-23541 Sears Operations LLC October 15, 2018
18-23558 Sears Protection Company October 15, 2018
18-23569 Sears Protection Company (Florida), L.L.C. October 15, 2018
18-23560 Sears Roebuck Acceptance Corp. October 15, 2018
18-23537 Sears, Roebuck and Co. October 15, 2018
18-23561 Sears, Roebuck de Puerto Rico, Inc. October 15, 2018
18-23577 SHC Desert Springs, LLC October 15, 2018
18-23578 SOE, Inc. October 15, 2018
18-23556 Sears Insurance Services, L.L.C. October 15, 2018
18-23557 Sears Procurement Services, Inc. October 15, 2018
18-23562 SYW Relay LLC October 15, 2018
18-23563 Wally Labs LLC October 15, 2018
18-23579 StarWest, LLC October 15, 2018
18-23580 STI Merchandising, Inc. October 15, 2018
18-23581 Troy Coolidge No. 13, LLC October 15, 2018
18-23559 Sears Protection Company (PR) Inc. October 15, 2018
18-23542 ServiceLive, Inc. October 15, 2018
18-23575 Sears Holdings Publishing Company, LLC October 15, 2018
18-23616 SHC Licensed Business LLC October 18, 2018
18-23630 SHC Promotions LLC October 22, 2018
19-22031 SRe Holding Corporation January 07, 2019