Sears soars 36% — one day after filing for bankruptcy

Markets Insider

• Sears Holdings filed for Chapter 11 bankruptcy on Monday.
• The retailer received approval on Tuesday to access a $300 million loan to keep it afloat during bankruptcy.
• Shares spiked as much as 124% Tuesday before paring their gains and finishing up almost 36%.
• Watch Sears trade in real time here.

Sears Holdings soared as much as 124% — one day after filing for bankruptcy — as the embattled retailer received approval to access a $300 million loan to keep it afloat during bankruptcy. After paring its gains, the stock finished up nearly 36% at $0.42 a share. 

“The Court’s approval of our First Day motions is an important step forward in our financial restructuring process that will allow the company to continue operating in the normal course and providing our customers and members with trusted service,” CFO Robert Riecker said in a press release.

“Our stores, online and mobile platforms, and related businesses are open and we continue to offer our customers and members the brands and products they want. We look forward to continuing to engage in productive discussions with our creditors and other stakeholders to pursue a plan of reorganization as expeditiously as possible.”

Early Monday morning, the iconic American retailer filed for Chapter 11 bankruptcy, saying it would close 142 US stores before year end and that Eddie Lampert would step down from his role as CEO but remain chairman. 

Sears’ stock price topped out at more than $122 in 2007, giving the retailer a market capitalization of nearly $30 billion. But the retailer struggled with shifts in consumer spending, and the rise of e-commerce, among other things, eventually leading to a collapse in share price.

On Monday, Sears touched a record low of $0.28 a share, leaving it with a market cap of just $33.79 million. It finished Tuesday at a $43.6 million valuation.