Here’s a better source - and story - on what’s going down at Sears.

Sears Holdings Corp., the struggling U.S. retailer owned by hedge fund manager Eddie Lampert, is laying the groundwork for a bankruptcy filing as soon as this weekend as it faces a critical debt maturity.

Lampert, who for weeks has been pushing a debt restructuring proposal that would avoid a Chapter 11 filing, is now focused on a deal that would preserve stakeholders’ value in a court restructuring, according to a person with knowledge of the matter. The company is in talks for financing that would fund operations through bankruptcy, said the person, who asked not to be identified because the discussions are private.

Eddie LampertSource: Sears Holdings Corp.
Representatives from Sears didn’t immediately return requests for comment.

Sears faces $134 million of debt maturing on Oct. 15, and Lampert’s ESL Investments said in a filing last month that the borrowings coming due were among those creating “significant near-term liquidity constraints” for the company. ESL, the retail chain’s biggest shareholder and also a major lender, proposed last month for Sears to refinance its debt and sell real estate to help pay down borrowings.

bloomberg.com