Bankrupt US retail giant Sears owes Vietnamese firm $4 million
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Sears, a U.S. retail titan that has filed for bankruptcy, owes a Vietnamese textile company upwards of $4 million. Sears Holdings filed for bankruptcy on October 15 after failing to make a $134 million debt payment tranche. Its subsidiaries, Sears, Roebuck and Kmart are partners of Vietnamese textile firm Thanh Cong, contributing about 7 percent to the textile firm’s revenue every year.
Last year, Sears contributed VND220 billion ($9.38 million) to Thanh Cong’s revenues of VND3.2 trillion ($136.5 million). Sears remaining debt to Thanh Cong is VND95 billion ($4 million), or 3 percent of the textile firm’s total assets, according to Vietnamese company’s third quarter report.
Thanh Cong CEO Lee Eun Hong said that his company was seeking to participate in the process and retrieve its money.
The hearing is scheduled for November 15.
Thanh Cong Textiles, established in 1967, has reported accumulated revenues of VND2.82 trillion ($120.3 million) in the first nine months of this year, up 15 percent year-on-year.
Exports account for 88 percent of the firm’s revenue.
The bankruptcy filing by Sears follows a decade of revenue declines, hundreds of store closures, and years of deals by billionaire Eddie Lampert in an attempt to turn around the company he acquired in 2005 for $11 billion.
Questions & Answers
Q.How significant is the debt from Sears to Thanh Cong in relation to the Vietnamese company's overall finances?
How significant is the debt from Sears to Thanh Cong in relation to the Vietnamese company's overall finances?
The $4 million debt represents 3 percent of Thanh Cong's total assets. Last year, Sears contributed about 7 percent to Thanh Cong's annual revenue, which was VND220 billion ($9.38 million) out of VND3.2 trillion ($136.5 million).
Q.When did Sears file for bankruptcy and what was the immediate reason?
When did Sears file for bankruptcy and what was the immediate reason?
Sears Holdings filed for bankruptcy on October 15. This action followed the company's failure to make a $134 million debt payment tranche, contributing to its financial collapse.
Q.What is the broader financial context for Sears's bankruptcy filing?
What is the broader financial context for Sears's bankruptcy filing?
The bankruptcy filing comes after a decade of declining revenues and hundreds of store closures. Billionaire Eddie Lampert had attempted to revitalise the company he acquired in 2005 for $11 billion.
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