Regulation FD Disclosure.
As previously reported, on October 15, 2018 (the Petition Date), Sears Holdings Corporation (the Company) and certain of its
subsidiaries (collectively, the Debtors) filed voluntary petitions (the Chapter 11 Cases) in the United States Bankruptcy Court for the Southern District of New York (the Bankruptcy Court) seeking relief under
chapter 11 of title 11 of the United States Code.
The Company does not believe that there will be sufficient funds or other assets in the Estate to allow
holders of the Companys common stock to receive any distribution of value in respect of their equity interests and expects to file a chapter 11 plan memorializing that belief in the coming weeks.
On March 8, 2019, the Debtors filed with the Bankruptcy Court their monthly operating report for the period beginning January 6, 2019 and ending
February 2, 2019 (the Monthly Operating Report). The Monthly Operating Report is attached hereto as Exhibit 99.1, and is incorporated herein by reference. This Current Report on Form
(including the exhibits hereto) will not be deemed an admission as to the materiality of any information required to be disclosed solely by Regulation FD. The Monthly Operating Report and other filings with the Bankruptcy Court related to the
Chapter 11 Cases may be available electronically at http://restructuring.primeclerk.com/sears.
The information contained in this Item 7.01 shall not be
deemed to be filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the Exchange Act), or otherwise subject to the liabilities of that section, and shall not be deemed to be incorporated by
reference into any of the Companys filings under the Securities Act of 1933, as amended, or the Exchange Act, whether made before or after the date hereof and regardless of any general incorporation language in such filings, except to the
extent expressly set forth by specific reference in such a filing.
Cautionary Statement Regarding the Monthly Operating Report
The Company cautions investors and potential investors not to place undue reliance upon the information contained in the Monthly Operating Report, which was
not prepared for the purpose of providing the basis for an investment decision relating to any of the securities of the Company. The Monthly Operating Report is limited in scope, covers a limited time period and has been prepared solely for the
purpose of complying with the monthly reporting requirements of the Bankruptcy Court. The Monthly Operating Report was not audited or reviewed by independent accountants, was not prepared in accordance with generally accepted accounting principles
in the United States, is in a format prescribed by applicable bankruptcy laws or rules, and is subject to future adjustment and reconciliation. There can be no assurance that, from the perspective of an investor or potential investor in the
Companys securities, the Monthly Operating Report is complete. The Monthly Operating Report also contains information for periods which are shorter or otherwise different from those required in the Companys reports pursuant to the
Exchange Act, and such information might not be indicative of the Companys financial condition or operating results for the period that would be reflected in the Companys financial statements or in its reports pursuant to the Exchange
Act. Results set forth in the Monthly Operating Report should not be viewed as indicative of future results.
Furthermore, this Form
and/or the Monthly Operating Report may include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of
historical facts, included in this filing that address activities, events or developments that the Company expects, believes, targets or anticipates will or may occur in the future are forward-looking statements. The Companys actual results
may differ materially from those anticipated in these forward-looking statements as a result of certain risks and other factors, which could include the following: risks and uncertainties relating to the Chapter 11 Cases, including but not limited
to, the Companys ability to obtain Bankruptcy Court approval with respect to motions in the Chapter 11 Cases, the Companys ability to confirm an acceptable plan of reorganization, the effects of the Chapter 11 Cases on the Company and on
the interests of various constituents, Bankruptcy Court rulings in the Chapter 11 Cases and the outcome of the Chapter 11 Cases in general, the length of time the Company will operate under the Chapter 11 Cases, risks associated with third-party
motions in the Chapter 11 Cases; the Companys ability to realize proceeds from remaining assets and the terms and conditions of any such sales; risks related to the trading of the Companys common stock on the OTC Pink Market,
particularly in light of the fact that the Company does not believe that there will be sufficient funds or other assets in the Estate to allow holders of the Companys common stock to receive any distribution of value in respect of their equity
interests; as well as other risk factors set forth in the Companys Annual Report on Form
and Quarterly Reports on Form
filed with the Securities and
Exchange Commission. The Company therefore cautions readers against relying on these forward-looking statements. All forward-looking statements attributable to the Company or persons acting on the Companys behalf are expressly qualified in
their entirety by the foregoing cautionary statements. All such statements speak only as of the date made, and, except as required by law, the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a
result of new information, future events or otherwise.