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Sept 24 (Reuters) - Sears Holdings Corp would have to sell more real estate and restructure its debt, Chief Executive Officer Eddie Lampert's hedge fund said in a regulatory filing, as the retailer looks to avoid bankruptcy.
The company's shares fell 7 percent in morning trading. They have lost 67 percent of their value since the start of the year. The stock was worth $30 in 2015 and now trades at just over a dollar.
The one-time American retail giant has struggled to transform its business in the face of declining foot traffic at brick-and-mortar stores and this month again warned about its ability to continue as a going concern.
To avoid bankruptcy, loss-making Sears last year sold its Craftsman tool brand to power tool maker Stanley Black & Decker for $900 million and signed a deal to sell Kenmore appliances on Amazon.com.
The company is considering selling its storied Kenmore appliance brand and home improvement business to Lampert's hedge fund, ESL Investments Inc, for as much as $480 million.
The hedge fund, in a filing made public on Monday, urged the retailer's board to sell $1.5 billion more in real estate and restructure $1.1 billion in debt.
Sears is currently saddled with $5.59 billion in debt, excluding convertible debt. That debt load could be reduced to $1.24 billion with the proposed transactions and restructuring, ESL said in the filing https://www.sec.gov/Archives/edgar/data/923727/000119312518280675/d590629dsc13da . h t m .
Sears said it has referred ESL's proposal to the special committee exploring the hedge fund's proposal to acquire Kenmore. (Reporting by Uday Sampath in Bengaluru, Writing by Sweta Singh, Editing by Sriraj Kalluvila and Anil D'Silva)