Sears Hometown Seeks to Liquidate After Losing Cash Access

Sears Hometown Stores Inc., a bankrupt retailer that was spun off from Sears Holdings, is seeking to cease operations and convert its Chapter 11 reorganization to a liquidation case after losing access to cash collateral.

Sears Hometown’s Monday request to convert the case to Chapter 7 comes after a secured creditor, PNC Bank, terminated Sears Hometown’s ability to use cash collateral that would have continued to fund the retailer’s reorganization.

The termination was triggered as of Sunday night because Sears Hometown’s lagging sales caused the company to exceed its budget under the agreement with the bank, according to the filing. ...