4th director to quit in 10 months. Bankruptcy prospects heat up. The board of directors of Sears Holdings keeps shrinking – and that makes sense: Who’d want to be a director as the retailer careens along its path to bankruptcy, it only being a question of when it’ll get there, and whether or not the company will make it through the holiday selling season.
Today the company announced that Bruce Berkowitz ‘has decided to step down’ from the board of directors, effective October 31, 2017. He’d joined the board in February 2016. So that wasn’t long. No reason was given for the abrupt departure, which caused bankruptcy fears to flare up, and shares (SHLD) plunged 11.5% to $5.99.
Berkowitz is the fourth director to jump overboard over the past 10 months and none has been replaced. The other three:
Steven Mnuchin quit the board in December ahead of his appointment as Secretary of the Treasury. He’d been on the board for 12 years. The vacant slot has not been filled. Alesia Haas quit the board in December 2016 after having joined in February 2016 – just long enough to get a look-see before bailing out. She’d been the CFO of OneWest Bank until it was acquired by CIT group. Cesar Alvarez quit the board in March 2017. He’d joined in December 2013. At the time, he was co-chairman of the law firm Greenberg Traurig. His slot has not been filled.
This post was published at Wolf Street on Oct 16, 2017.