The retailer was sued on Wednesday by Stanley Black & Decker Inc, which accused it of breach of contract and trademark infringement over its new line of professional-grade mechanics tools under the Craftsman Ultimate Collection brand.
Sears Holdings, which owns Sears department stores and Kmart, filed for bankruptcy on Oct. 15. In previous court filings, it has said it was in talks with ESL about a “going concern bid” that could help the company emerge from bankruptcy.
StockMarketNews.Today – Lampert’s hedge fund, ESL Investments Inc, has held discussions with Cyrus Capital Partners LP, an investment firm that holds some of Sears’ existing debt, about sharing the burden of funding portions of the $300 million loan, which would be separate from another $300 million bankruptcy loan that Sears’ banks have offered to provide, the sources said.
StockMarketNews.Today – The plan that Sears and its lenders reached over the past week isn’t unfamiliar. Dozens of retailers have sought chapter 11 protection in recent years, namely because of the consumer shift to online shopping, expensive store leases and heavy debt burdens.