Ward Files For Bankruptcy

Montgomery Ward & Co., the nation’s largest privately owned retailer, on Monday filed for bankruptcy-court protection from its creditors as it attempts to reorganize its finances.

The 125-year-old company, which operates 400 stores in 43 states, pioneered the concept of mail-order shopping but has seen its customer base erode. Ward has said it expects to lose $250 million in the first half of this fiscal year.

The retailer said it filed in federal bankruptcy court in Delaware after a small group of lenders blocked a restructuring plan that most of its lenders had agreed to.

GE Capital Services, which owns a majority stake of the retailer, endorsed the move and promised to provide Ward with a $1 billion line of credit to make sure its stores remain fully stocked.

“We are convinced that Montgomery Ward’s filing … is the best way for the company to conclude a quick and effective restructuring,” GE Capital executive vice president Ed Stewart said in a statement.