Sears files for bankruptcy, stores stay open

Tuesday, 16 Oct, 2018

The retailing giant, which includes its eponymous department store and the Kmart discount chain, said Monday it has filed for Chapter 11 bankruptcy. Massive liquidation sales will start at the stores soon, the company said.

When Sears and Kmart merged in 2004 at a price of $11 billion they had a combined 3,500 stores, but the stars of the retailers had already begun to fade.

According to a list obtained by CNN, the stores located at the Stoneridge Mall in Pleasanton and the Santa Rosa Plaza will be closing.

According to a USA Today story that sites court documents of the bankruptcy, Moline's Kmart is among three stores in IL that will close.

Sears was built on two brilliant observations.

At its peak, the operator of Sears and Kmart had around 4,000 stores, but it will now be left with a little more than 500, according to the Associated Press.

The company said it intends to stay in business through stores that are profitable and its online shopping sites, reported CNN.

Sears employed about 89,000 workers in the United States as of February, compared with 246,000 people five years ago. The metro-east's nearest Kmart, in the Flower Valley Shopping Center in Florissant, Missouri, will close.

The 125-year-old company, which has not turned a profit since 2010, had a $134 million debt payment due Monday that it previously reported it can not cover.

"Lampert will make out", said Mr. Olbrysh, the retired Sears worker.

Lampert's ESL also is in talks to purchase "a large portion of the company's store base", and other company assets will be put up for sale in the coming months, Sears said in a news release.

Sears is planning to seek bankruptcy protection in NY as soon as Sunday night, though a court filing could slip into Monday, the sources added, asking not to be identified because the negotiations are confidential.

As of May, it had fewer than 900 stores, down from about 1,000 at the end of a year ago.

Sears had been drowning in debt and reportedly could not afford a $134 million repayment that had been due on Monday.

After more than a century of retail dominance, Sears looks close to collapse.

Sears' stores helped reshape America, drawing shoppers away from the traditional Main Street merchants. Sears, Roebuck and Co.'s iconic catalog featured items from bicycles to sewing machines to houses, and could generate excitement throughout a household when it arrived.

But rival retailers from a variety of categories should see this moment for what it is: It is Sears's last gasp. Other stores will be conducting sales and closing by November 2018. Lampert partially spun off the company from its parent in 2012 and was Sears Canada's biggest shareholder. It doesn't expect any Sears-related impact to its current earnings guidance.

Real estate experts believe that Sears' move to further shutter stores as part of its restructuring would be a mixed blessing for landlords.