Looking through the Seritage filing and the news about the Bangladeshi vendors, you can see how it spells imminent disaster for Sears and Kmart. Whatever else happens, the first person Eddie Lampert pays as owner is always Eddie Lampert. None of these stores that Eddie owns is paying Seritage, which is money that goes would go into Eddie's own pockets. These are all the supposedly "best" stores that TransformCo has been trumpeting as Go Forward for the past two years. That means Seritage doesn't have money to issue dividends anytime soon. The Bangladeshi vendors say TransformCo lied about its finances, and TransformCo itself says they're going to destroy the stock. That means TransformCo can't even afford the warehouses to store the stock and are willing to get sued for both nonpayment, breach of contract and all the rest. There's news about Lands' End furloughs, and if you peek over at the Lands' End board, there's a post about Lands' End layoffs. There's no need to talk about the Sears/Kmart closings.
Seritage is bleeding cash. It has insufficient capital to renovate properties and is selling assets. It's getting sued by tenants that have signed leases saying that it has not made buildings ready for move in. It can't even collect half the rent that it's supposed to collect. Meanwhile Sears has borrowed billions, sold DieHard and Innovel, and it STILL can't pay the paltry $40 million necessary to avoid a class action which could force bankruptcy and a straight up piercing of the corporate veil to ESL because of underfunding in TransformCo. What does Eddie have left to put up as collateral to get another loan for Sears? ESL has less than $100M left in left in equity, Kenmore has been shopped for a decade without a buyer, as relevant as Speed Queen, Seritage is effective owned by creditor Warren Buffet who will walk away with nothing if he lets Eddie's toadies run it any longer, and Lands' End brand is being systematically destroyed just like Sears and being turned into another cash incinerator.
Put it all together, and Sears is going to be in Chapter 7 very soon, this time in involuntary bankruptcy if Eddie doesn't declare it first. Somehow Eddie's capital investments never quite end up being investments, but instead turn into writeoffs with -500% returns.