Why Sears Holdings’ Asset Sales Strategy Is a Patchwork Solution
Sears Holdings (SHLD) has been selling both its real estate and some of its brands to pay down debt. More recently, the company also amended an agreement with PBGC (Pension Benefit Guaranty Corporation), whereby after February 2018, nearly 138 properties will be moved away from the ring-fence agreement created under the PPPFA (Pension Plan Protection and Forbearance Agreement) by paying $407 million towards the company’s pension plan. This amendment will make it possible for Sears to sell these additional 138 properties to boost liquidity.