Sadly, this will be a mess for all affected parties: creditors, terminated employees and Sears alike.

I'll add my comment to a group that wasn't discussed: the employees who are remaining. To see their colleagues being let go with no severance, and retirees having their pensions and benefits cut is bound to have an effect on morale. A demotivated workforce is bound to affect customer service and, subsequently, go-forward profitability.

In summary, I sure hope that Sears can pull through this and restore something to all affected employees. A once-great company like Sears (didn't they once sell mail-order houses?) deserves more than to end up as a business school case-study in how "human factors" can throw a wrench into the most well-intentioned turnaround plans.

My best wishes to everyone affected by this: you have a tough road ahead of you.