Lampert eyes bankruptcy for Sears: report

Hedgie Eddie Lampert may be preparing to cut his losses on Sears Holdings just prior to a huge debt payment due next week.

The long-troubled iconic retailer has been working with M-III Partners to prepare what may appear to be a prepackaged bankruptcy filing that could come as soon as this week, according to a Wall Street Journal report.

M-III Partners has been working the past couple of weeks at Sears Holdings’ headquarters in Hoffman Estates, Ill., people familiar with the situation told the Journal.

The impetus for the fast moving bankruptcy preparation is a $134 million debt payment due this coming Monday.

Lampert — Sears’ and Kmart’s chairman, chief executive, largest shareholder and biggest creditor — is reportedly looking for a larger restructuring than just anteing up more cash to bail out the cashstrapped retailers.

The hedge-fund billionaire is looking to cut more than $1 billion from Sears’ $5.5 billion debt, unload another $1.5 billion worth of real estate and sell $1.75 billion in assets, including the Kenmore appliance brand, according to the Journal report.

On Tuesday, Sears brought in corporate-restructuring pro Alan Carr as a director.

He currently runs a restructuring-advisory firm and previously worked as a restructuring lawyer at Skadden, Arps, according to the report.

Sears and Kmart have lost more than $11 billion since 2011, and their annual sales have dropped nearly 60 percent in that period to $16.7 billion, according to the report.

Sears, once the world’s largest retailer, has struggled in the face of declining foot traffic in its stores.