Sears Holdings said it will incur charges of approximately $443 million, including $81 million in markdowns, $9 million in severance costs, $335 million in lease termination costs, $12 million in other charges, and $6 million in depreciation, in the third and fourth fiscal quarters of 2018 as a result of the store closures announced on October 15, 2018.

The estimated amount for lease termination costs includes leases that may be rejected pursuant to the Company’s proceedings under Chapter 11 of title 11 of the United States Code and is based on contractual future rent payments and does not include any adjustment to reduce the amount to the expected allowed claims as the damages from the possible rejection of such leases cannot currently be estimated.

The charges recorded by the Company for the third quarter ended November 3, 2018 were disclosed in a recent regulatory filing with the SEC.

Sears Holdings filed for Chapter 11 in October, with commitments for $300 million in senior debtor-in-possession (DIP) financing from its senior secured asset-based revolving lenders and is negotiating a $300 million subordinated DIP financing with hedge fund ESL Investments, Inc. (ESL). ESL is the Company's largest stockholder and creditor, and Edward S. Lampert is ESL's Chairman and Chief Executive Officer. Lampert has objected to the liquidation of the company and recently placed a bid of $4.6 billion to purchase what remains of Sears Holdings Corp. over the objections of other creditors who favor liquidating the troubled retailer.