Sears to take big charge on bond verdict
Home & Textiles Today Staff -- Home Textiles Today, February 5, 2007
Hoffman Estates, Ill. – Sears Holdings Corp. said today it will appeal a Feb. 2 decision by a Dallas court requiring Sears to pay a group of institutional bondholders about $73.5 million in a case that stems from the retailer’s 2004 sale of its credit-card business.
Sears has maintained that its redemption of the bonds at the time was appropriate, but the bondholders said it was a breach of contract; the jury agreed with the bondholders.
In the meantime, the company will take a charge in fourth-quarter earnings which will reduce after-tax earnings by about $44 million, or $0.29 per fully diluted share.