Sears To File For Bankruptcy, Several Stores To Close

Sears To File For Bankruptcy, Several Stores To Close

Sears Holdings Corp, the 125-year-old retailer known for its Kenmore and DieHard brands, collapsed into bankruptcy under pressure from too much debt and too few shoppers.

The filing in federal bankruptcy court in NY came in the early hours of Monday morning. In the last two years alone, the company has closed more than 725 Sears and Kmart stores.

Sears joins a growing list of retailers that have filed for bankruptcy or liquidated in the last few years amid a fiercely competitive climate. Negotiations over the fate of the fallen company have been continuing this week, as it faces a critical $134 million of debt that is maturing on October 15.

"As we look toward the holiday season, Sears and Kmart stores remain open for business and our dedicated associates look forward to serving our members and customers", Lampert stated.

Is Sears still open?

Getting out of these ancillary businesses was supposed to allow Sears' executive team to focus on luring people to Sears stores to buy consumer goods again - but they had limited success.

But in recent decades the company struggled in a quickly shifting retail environment, battered by competition from big-box stores and then by the meteoric rise of Amazon and other e-commerce players.

More news: World Oil Market Well Supplied For Now, Says IEA

Sears added it had received commitments for $300 million in debtor-in-possession financing and was negotiating for an additional $300 million. CEO Eddie Lampert will step down, but remain as chairman.

No. Sears says it will make every effort to ensure a timely delivery for your order. But the big question is whether the shrunken version of itself can be viable or will it be forced to go out of business, closing the final chapter for an iconic name that originated more than a century ago. Last month, Lampert said that Sears had been "significantly impacted" by paying more than $4.5 billion for its pension plans since 2005. Its debt to Pension Benefit Guaranty Corp, a USA government agency overseeing the retirement benefits of former Sears workers, was not disclosed in the bankruptcy filing. According to Business Insider, there were 866 Kmart and Sears stores still open as of September 13, down from almost 2,000 stores five years ago. The holding company has closed almost 3,000 Sears and K-Mart locations over the past decade and are now down to fewer than 1,000 retail locations. In April 2007, shares were trading at around $141.

The chapter 11 bankruptcy filing comes 131 years after Richard Sears moved his business to Chicago, where the watch company would grow to become a retail empire that gave the city its tallest building, employed hundreds of thousands of people and mesmerized children everywhere with its annual Christmas Wish Book catalog.

The company has struggled with outdated stores and complaints about customer service.

Under Lampert, the company saw a $1.5 billion profit in 2015, but it's been downhill ever since.

Shareholders generally lose all or most of their investment when a company files for bankruptcy, and the ability of Sears to escape liquidation will depend on the willingness of creditors and suppliers to keep the company afloat. A long series of store closings has left it with under 900 today.

Rosenblum told The Post that those with the most to lose from Sears' end will be the workers who stand to lose their pensions and jobs.

Related Articles

  • Man City Deny Reports That They Offered Messi Astronomical Salary

    Man City Deny Reports That They Offered Messi Astronomical Salary

    Every Ballon d'Or award since Kaka won it in 2007 has been taken home by either Ronaldo or Messi , with the two tied on five each. "We had money to buy great players and we had the best player in the world ( Lionel Messi ) by a distance".
    Oil price extend losses as other markets fall, stockpiles climb

    Oil price extend losses as other markets fall, stockpiles climb

    Iranian oil industry has been under pressure from the US efforts to isolate the country by reimposing sanctions. The shut-in capacity stands at 324,190 bpd of oil production and 283.88 million cu ft of natural gas output.
    What Alex Cora Expects From Rick Porcello In Game 4 Against Yankees

    What Alex Cora Expects From Rick Porcello In Game 4 Against Yankees

    Porcello will toe the rubber for the Red Sox in Game 4 of their American League Division Series against the New York Yankees . The first-year manager said Price, the loser in the Red Sox's only defeat in the ALDS, is still in line to start Game 2.
  • Astros Vs. Red Sox

    Astros Vs. Red Sox

    Verlander pitched six innings of two-hit ball , and Carlos Correa fisted a single into left field to break a sixth-inning tie. Sure, the Red Sox lead man only allowed one hit in his four innings of work, but the pitch count of 86 told the true story.
    Samantha Markle refused entry to Meghan's palace after turning up unannounced

    Samantha Markle refused entry to Meghan's palace after turning up unannounced

    Weird pictures show Samantha clutching a Harry mask that she bought from a souvenir shop after refusing to leave the Royal area. Meghan Markle's pregnancy may be determined through a number of things including some changes in her body language.
    Storm Callum: UK braced for heavy rain and 70mph winds

    Storm Callum: UK braced for heavy rain and 70mph winds

    Storm Callum was the third named storm of the windy season - but no past year has seen three named storms before November 29. Thousands of homes are without power this morning after Storm Callum brought very strong winds and heavy rain overnight. .
  • Cologne train station hostage situation in Germany today

    Cologne train station hostage situation in Germany today

    Police say officers have contact with the man and that trained hostage negotiators are working on the case. Police said only that he was injured during the police operation to free the woman.
    How major USA  stock indexes fared Friday

    How major USA stock indexes fared Friday

    The Dow Jones industrial average fell more than a thousand points between Tuesday and Thursday . All 11 sectors in the S&P 500 are lower, with banks and energy stocks the hardest hit.
    Meghan Markle's BFF is Joining Her Royal Tour

    Meghan Markle's BFF is Joining Her Royal Tour

    Prior to that, the duchess also wore Alexander McQueen, a British label, to her sister Pippa Middleton's wedding. This article was originally published inThe Sun and has been reproduced her with permission.
  • Here's how to stop the malicious message from bricking your PS4

    Here's how to stop the malicious message from bricking your PS4

    PS4 gamers beware, a message is going around that will crash your console and potentially force you to perform a factory reset. Once the database rebuild is underway, it will scan the drive and create a new database of content installed on the system.
    At least 8 climbers dead after snowstorm in Nepal, police say

    At least 8 climbers dead after snowstorm in Nepal, police say

    Mountaineering experts are questioning how the experienced team was so badly hit while still at base camp at around 3,500 metres. The accident is believed to have happened either late Thursday or Friday, but there are no surviving witnesses .
    Pope Francis Accepts Cardinal Wuerl's Resignation

    Pope Francis Accepts Cardinal Wuerl's Resignation

    Pope Benedict elevated then-Archbishop Wuerl to the College of Cardinals in November 2010, shortly after Wuerl's 70th birthday. Other bishops, also facing tough questions, could now find themselves beset by calls to follow Wuerl's example and step down.