SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
________________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) April 10, 1997
SEARS, ROEBUCK AND CO.
(Exact name of registrant as specified in
charter)
New York 1-416
36-1750680
(State or Other (Commission
(IRS Employer
Jurisdiction of File Number)
Identification No.)
Incorporation)
3333 Beverly Road, Hoffman Estates, Illinois
60179
(Address of principal executive offices)
(Zip Code)
Registrant's telephone number, including area
code (847) 286-2500
<PAGE>
Item 5. Other Events.
On April 10, 1997, the registrant
issued the press release attached hereto as
Exhibit 99. The press release relates to a
voluntary restitution plan Sears filed with
the U.S. Bankruptcy Court for the District of
Massachusetts on April 9, 1997 to remedy
certain past bankruptcy collection practices.
The plan addresses all reaffirmation
agreements with Sears debtors that were not
filed with the bankruptcy court from 1992
through April 1, 1997. Sears estimates that
during this period it received notice of $2.4
billion of debt owed to it which was the
subject of Chapter 7 bankruptcy filings, of
which Sears reaffirmed approximately $412
million. Sears does not yet know what
portion of the $412 million in reaffirmed
debts were not filed with the court, but is
working expeditiously to resolve this matter.
While the cost of the plan has not yet
been determined, it will be charged to
operations as soon as the amount is
quantified.
Item 7. Financial Statements, Pro Forma
Financial Information and Exhibits.
The Exhibit Index on page E-1 is
incorporated herein by reference.
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<PAGE>
SIGNATURES
Pursuant to the requirements of the
Securities Exchange Act of 1934, the
Registrant has duly caused this report to be
signed on its behalf by the undersigned
thereunto duly authorized.
SEARS, ROEBUCK AND CO.
Date: April 10, 1997 By:/S/Michael D. Levin
MICHAEL D. LEVIN
Senior Vice President,
General Counsel and Secretary
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<PAGE>
EXHIBITS
99. Sears, Roebuck and Co. press release
dated April 10, 1997.
E-1
Exhibit 99
CONTACT
Jan Drummond
847-286-8316
FOR IMMEDIATE RELEASE
April 10, 1997
SEARS initiates VOLUNTARY RESTITUTION PLAN
FOR certain PAST BANKRUPtCY COLLECTION PRACTICES
HOFFMAN ESTATES, Ill. -- Sears, Roebuck and Co. yesterday filed
a motion in U.S. Bankruptcy Court for the District of
Massachusetts indicating that the company would voluntarily
repay Chapter 7 bankruptcy debtors nationwide whose debt
reaffirmations were not filed as required by the U.S. Bankruptcy
Code.
Under the reaffirmation provisions of the U.S. Bankruptcy Code,
a debtor seeking Chapter 7 protection may agree to repay his or
her debts to creditors. This reaffirmation must be filed with
the court to be valid.
Sears said it exercised flawed legal judgment in the execution
and handling of certain debt reaffirmations. Immediately upon
learning of this problem, the company's senior management last
week directed that all reaffirmations must be filed in a timely
fashion. Yesterday, the company initiated the voluntary
restitution plan described in its motion to the Bankruptcy Court
in Massachusetts. The company also discussed its plan with the
offices of the Massachusetts Attorney General and the U.S.
Bankruptcy Trustee for Region One, which includes Massachusetts.
Under the plan, the company will return amounts collected
through reaffirmation agreements that were not filed, including
principal and finance charges, with interest.
- more -
To implement the plan, Sears has initiated a process to identify
any debtors whose reaffirmation agreements were not filed
properly during the period 1992 to date. Until repayments can
be made, the company, as soon as possible, will cease sending
billing statements and assessing interest charges to former
debtors who signed reaffirmation agreements that were not filed.
While the company is in the early stages of assessing the cost
of its plan, Sears expects it may have a material effect on 1997
annual earnings.
The company yesterday received documents relating to a class
action suit filed in the Bankruptcy Court of Massachusetts that
pertain to the same issues.
Sears has retained the services of Professor Lawrence P. King,
the Charles Seligson Professor of Law at New York University
School of Law, to perform a review of Sears procedures with
regard to reaffirmation agreements. The company advised the
court that it is committed to following Professor King's
recommendations to assure future compliance with requirements of
the bankruptcy code.
Sears, Roebuck and Co. is a leading U.S. retailer of apparel,
home and automotive services, with annual revenues of more than
$38 billion.
