The Sears store in White Plains, N.Y., is open for business, while at a bankruptcy court a 10-minute walk away, an army of lawyers, bankers and financial advisers is gearing up to determine the outlet’s fate and the future of hundreds of stores like it, according to a Wall Street Journal commentary. Sears, which is based in Chicago and has a long history there, sought court protection in New York’s suburban Westchester County. The retailer’s decision to take a stand far from its headquarters was no surprise to bankruptcy professionals. By filing in White Plains, Sears chose not only its court but also its judge: Robert D. Drain. For retailers hoping to survive chapter 11, there’s a big difference between Chicago and New York. Judges in the Seventh Circuit, where Chicago’s bankruptcy court is located, spurn a concept called “critical vendor,” which allows troubled companies to pay off old bills from important suppliers during a bankruptcy instead of making them wait until the end of the case. On Oct. 15, day one of Sears’s bankruptcy case, Judge Drain gave Sears something it likely couldn’t have gotten if it had filed for bankruptcy protection in Chicago: permission to pay $70 million to important suppliers of top brands, according to the commentary.
