It comes as less ideal news to the store that over 200 vendors as of today have stopped shipping goods altogether, partly due to trade credit insurers pulling limits, or vendors not having any cover whatsoever.
In an attempt to repay its prime creditors, Sears has arranged $1.875 billion in bankruptcy financing to extinguish its existing loans. But this $1.875bn will only pay the top companies! What happens to the remailing $3.125bn that is owed to the smaller fish in the pond?
Let’s have a look at some numbers and names…
Top Debtors and Amount Owed:
o Whirlpool - $23.4 million
o Frigidaire - $18.6 million
o Cardinal Health - $13.9 million
o Samsung - $8 million
o Black & Decker - $5.9 million
o Apex Tool International, more than $6 million
o Eastern Prime Textile Limited, nearly $6 million
With the list of debtors being extensive!
Without a doubt it's the heavy hitters that will be reimbursed with the bankruptcy financing, leaving the smaller guys out of pocket. Yet again it will be the SME’s who bear the brunt of the cost.