Sears, once a retail titan, files for Chapter 11 bankruptcy

Sears bankruptcy seen imminent as once-dominant retailer keeps shrinking

Sears bankruptcy seen imminent as once-dominant retailer keeps shrinking

While the company said its Sears and Kmart stores will continue to operate as usual, another 142 unprofitable locations will be shuttered by the end of 2018. It did not specify whether the closings would be Sears or Kmart stores or their locations.

Sears has been closing stores and selling properties as it grapples with a debt load of more than $5bn. He will remain the retailer's chairman.

Benton Harbor-based Whirlpool Corp.is Sears' seventh-largest creditor, owed more than $23 million. The company has more than 700 stores across the country, including at the Chautauqua Mall in Lakewood. But it faltered as discounters, specialty chains and online merchants wooed consumers away in recent decades, and it never seemed to find the niche that would keep them coming back.

At various times, Sears brands have included Allstate Insurance, Coldwell Banker real estate and Discover Card.

The chain, which comprised 863 mall-based stores and an additional 1,200 retail locations in the year 2000, had 866 Sears and Kmart stores as of August 4 and expected to close 149 of them in the second half, according to a September 13 filing.

Buckling under pressure, the bankruptcy announcement comes ahead of a $134 million (£102 million) debt repayment due at the start of this week.

A trio of the company's top executives will now run the company.

But ultimately, it was not possible to achieve a successful restructuring outside a Chapter 11 bankruptcy process, ESL said. "Sears was just such an integral part of their childhood, building that American family". According to the Wall Street Journal, Sears has hired M-III Partners, a boutique advisory firm specializing in seeing companies through bankruptcies and restructuring, The company is also talking to lenders about providing it with debtor-in-possession financing, CNBC reported. Sears merged with Kmart in 2005. In May, the company said it had identified 100 more unprofitable stores in the USA and would close 72 of them in the near future.

Sears' stock has fallen from about $6 over the past year to below the minimum $1 level that Nasdaq stocks are required to trade in order to remain on the stock index.

But it has struggled to reinvent itself in the face of online competition from companies such as Amazon.com Inc, as well as other brick-and-mortar retailers, including Walmart Inc.

In an earlier attempt to avoid bankruptcy, Sears past year sold its Craftsman tool brand to power tool maker Stanley Black & Decker for $900 million.

She said a refrigerator her mother bought at Sears broke after two years and it still hasn't been fixed for nearly a month with no help from the retailer.

But most REIT shares gained on Monday as investors focused on the potential benefits of a Sears bankruptcy. That could boost same-store sales at many chains. Options could range from food halls to pop-up stores to Tonya-Harding-esq skating rinks, Rosenblum said - so long as the concept was about more than just shopping. But the onset of discounters like Walmart created challenges for Sears that have only grown.

There will be no immediate impact to merchandise pricing (stores are not now liquidating).

Recommended News

  • What You Need to Know About Sears Bankruptcy Filing

    What You Need to Know About Sears Bankruptcy Filing

    In just the last few years RadioShack, Toys "R" Us and Sports Authority have all followed the path to the retailer graveyard. Struggling retailer Sears , which has a store at the Natick Mall, has filed for bankruptcy.
    Couple divorce after Google Street View captures wife stroking another man's hair

    Couple divorce after Google Street View captures wife stroking another man's hair

    The photograph is one of a long line of freakish images taken for the Google Maps and Google Street View online resources. The picture immediately caught his attention, because the woman in the photo was dressed in the same clothes as his wife.
    Buckingham Palace shares Princess Eugenie's official wedding photos

    Buckingham Palace shares Princess Eugenie's official wedding photos

    Competitors BBC and Sky News showed snippets of the wedding and the crowds thronging the streets of Windsor outside the castle. Then, there is Princess Eugenie and Jack, who are both traditional Brits, but who also have an appreciation for modern art.
  • Fallout 76: Getting In Before The Beta

    Fallout 76: Getting In Before The Beta

    Interestingly, The Greenbrier , in real-life housed a fallout shelter meant for Congress if nuclear war were to break out. It's map is called Appalachia - a reference to the US Appalachian region where West Virginia is located.
    Hurricane Michael: mayor hopes for 'miracle' in destroyed Mexico Beach

    Hurricane Michael: mayor hopes for 'miracle' in destroyed Mexico Beach

    A second website has also been set up for residents impacted by the storm to check in and let others know they are safe. Florida officials have evacuated nearly 3,000 inmates after two prisons were damaged during Hurricane Michael.
    'Fortnite' For Android Beta Now Available For Everyone

    'Fortnite' For Android Beta Now Available For Everyone

    Those with lower specs (as low as Android 5.0 and 3GB RAM) will still be able to play, but the game may run fairly slow. You have to join the open beta by scanning a QR code , and it will take you to the download page .
  • Khabib To Mayweather: In The Jungle, There is Only One King!

    Khabib To Mayweather: In The Jungle, There is Only One King!

    Khabib quickly replied, "Just send me location", prompting 50 Cent to reiterate his offer: "I'm dead serious Khabib". The rap star recently signed a lucrative sponsorship deal with the promotion. 50 Cent is not playing games.
    Patriots Beat Chiefs 43-40 In Thrilling Clash Of AFC Powerhouses

    Patriots Beat Chiefs 43-40 In Thrilling Clash Of AFC Powerhouses

    Uncharacteristic decision-making from Brady led to a strip sack Kansas City quickly turned into a third-quarter touchdown. Brady used a 16-yard pass to James White and a 39-yard pass to Rob Gronkowski to get New England into field-goal range.
    Children From Washington Hit With Rare Disease Similar To Polio

    Children From Washington Hit With Rare Disease Similar To Polio

    The most severe symptom of AFM is respiratory failure that can happen when the muscles involved with breathing become weak. Pediatric Infectious Disease Specialist Mark Hicar said driving the auto is more of a danger than catching AFM.
  • IEA sees world oil market 'adequately supplied'

    IEA sees world oil market 'adequately supplied'

    The IEA report is the latest government assessment to predict weaker demand ahead and conclude that supply is adequate. On Thursday, crude oil futures ended down $2.20, or 3%, at $70.97 a barrel, after having shed 2.4% a session earlier.
    Verlander cools off Red Sox 7-2 in Game 1 of ALCS

    Verlander cools off Red Sox 7-2 in Game 1 of ALCS

    Alex Bregman scored on Correa's hit after starting the inning by getting hit by Kelly's 100 miles per hour fastball. The vaunted Verlander focus certainly wasn't sidetracked by the 108-win Red Sox and the sellout crowd at Fenway.

    Trump hints Pentagon Chief Mattis might be planning to quit

    When asked if other people would soon be leaving his administration, Trump responded, "Yeah, other people will go, sure". But Trump, in his " 60 Minutes " interview, downplayed the high number of departures.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.