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Sears names new independent director amid report it is skipping paying vendors

The iconic company appears to be teetering on the verge of going out of business
Sears signage
Sears has been shuttering stores and selling off parts of its business amid a retail apocalypse

Sears Holdings Corp (NASDAQ:SHLD) said on Thursday that Alan J. Carr, the managing member and CEO of Drivetrain LLC has joined the board of directors of the company amid a report the iconic retailer is skipping payments to vendors amid talks it will soon file for bankruptcy protection.

Reuters reports that three vendors said Sears had missed scheduled payments in the last couple of weeks, although it was not clear how widespread the vendor problems are and how they affect the company's supply chain ahead of the holiday shopping season.

Carr has significant experience as a principal, investor and advisor leading complex financial restructurings, as well as serving as a director of reorganized businesses in the US and Europe, Sears said in a statement.

Shares of the company were down 16.7% to $0.405 by midsession on Thursday.

READ: Sears to close 72 unprofitable stores after missing market's fiscal 1Q profit estimate

Vendors could halt shipments to the company if they are worried Sears can no longer pay and this could be potentially devastating for the retailer. 

"Alan brings deep experience as a director for companies that went through complex organizational change. We are pleased to welcome him to the board and look forward to the benefit of his expertise as we work to maximize value for the company and its stakeholders," said Sears chairman and CEO Edward Lampert.

Sears Holdings is a leading retailer focused on connecting the digital and physical shopping experiences of customers.

The company is based in Hoffman Estates, Illinois. 

Reporting by Rene Pastor, contactable on [email protected]

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