Iconic US retailer Sears Holdings Corp files for bankruptcy

15 October, 2018, 12:57 | Author: Regina Silva
  • Throughout Sears' long struggle some vendors learned early to reduce their exposure

The company filed for protection from creditors with the U.S. Bankruptcy Court in NY.

The company said it has arranged $300 million in debtor-in-possession financing, which will allow it to continue operating the business and paying employees while it tries to restructure around a smaller group of stores.

Those deals could be subjected to new scrutiny by Sears' creditors in bankruptcy court. Sears was widely considered to be an early innovator of the shopping landscape. It will shut another 142 stores by the end of the year, following 46 recently announced store closures.

Sears CEO Eddie Lampert and a Sears store. The company will now be run by three of the company's top executives.

While we have made progress, the plan has yet to deliver the results we have desired, and addressing the company's immediate liquidity needs has impacted our efforts to become a profitable and more competitive retailer.

But while the retailers typically file for bankruptcy with the intention of staying in business, numerous retailers end up going out of business after filing.

The upcoming critical holiday season will be a particular challenge for the company.

USA retailer Sears, a brand that once dominated shopping malls in the country, has filed for bankruptcy. Sears Canada Inc. liquidated a year ago and about 12,000 people lost their jobs.

The department-store chain has been losing money and closing stores for years. It slashed spending on advertising and it failed to invest in the upkeep and modernization of its stores. Since 2012, losses have topped $10 billion. Sears has been looking for a buyer for its Kenmore brand of appliances for years.

Talks are continuing in advance of a $134 million debt payment that's coming due for Sears on Monday - a payment that Lampert has reportedly told associates he doesn't plan to make. The Sears board never accepted the offer. In its last fiscal year, it generated 16.7 billion USA dollars in sales, down from more than 50 billion United States dollars in 2008. Sales have plunged 60% since then. In the last two years alone, the company has closed more than 725 Sears and Kmart stores.

Prince Harry and Meghan arrive in Australia, ahead of NZ visit
The 16-day trip coincides with the fourth Invictus Games, beginning in Sydney on Saturday, and includes dozens of official events. Prince Harry and Meghan Markle will touch down in Sydney this morning for their whirlwind royal tour ahead of the Invictus Games.

All Studs and no Duds in Seahawks Week 6 dismantling of Raiders
Now the Raiders are considering shaking up the roster even further, by shopping a couple former first-round draft picks. Sunday's 27-3 loss to the Seahawks is the Raiders' worst offensive performance since a 52-0 loss to the Rams in St.

Jamal Khashoggi's Fiancée Pens Obituary-Style Op-Ed For Missing Saudi Writer
Benchmark Brent crude now trades above $80 a barrel and USA gasoline prices have risen ahead of the midterm elections. Pressed this week about the Khashoggi situation, Trump stopped short of criticizing or threatening Saudi Arabia.

Parts of Sears have already been through bankruptcy. Total revenue dropped 30 per cent in the most recent quarter, hurt by continued store closings. Once the dominant appliance retailer in the country, Sears accounted for only 3% of Whirlpool's sales worldwide a year ago.

All signs point to a bankruptcy filing in the next few days. But he warned that the company was running out the cash.

Sears Holdings - which also owns Kmart - filed for Chapter 11 bankruptcy protection on Monday.

Sears was once the nation's largest retailer and its largest employer.

"There was a time when Sears was the Amazon of its day". He soon partnered with watch repairman Alvah Roebuck. Sears, Roebuck and Co.'s iconic catalogue featured items from bicycles to sewing machines to houses, and could generate excitement throughout a household when it arrived.

The Sears catalog was the way many Americans first started to buy mass produced goods.

Sears' stores helped reshape America, drawing shoppers away from the traditional Main Street merchants. But it struggled to get more people through the doors or to shop online. Big box retailers such as Walmart beat it on both price and merchandise selection.

Eddie Lampert, left, pledged to return Sears to greatness by leveraging its best-known brands and its vast holdings of land. At the time, they had 3,500 USA stores between them.

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



Merkel's Bavarian allies lose absolute majority
It's not yet clear whether the Bavarian vote will affect the national government's stability - or Merkel's long-term future. Jan Techau at The German Marshall Fund of the United States think-tank described Merkel as "exhausted and weakened".

Todd Gurley drives the Rams' offense with 3 scores on Sunday
This Rams offense is terribly well balanced, both in terms of play selection and in the number of players touching the ball. Facing third-and-23, Wilson was pressured from the pocket by Cory Littleton and Seattle punted with 3:38 left.

Seann Walsh Strictly: 'Cringey' reason star changed his name REVEALED
She started the statement insisting she is not a victim and ended it saying: I'm not sorry I took the cat, though. He wrote: "In light of the story in today's newspaper I would like to offer my honest apologies for my actions".

Erdogan, Saudi King discuss Khashoggi case over phone
Turkish officials say they fear Saudi agents killed Khashoggi after he entered the Saudi Consulate in Istanbul on October 2. Turkey claims that Khashoggi, who wrote for The Washington Post , was killed inside a Saudi diplomatic mission in Turkey.

4 men fatally shot at toddler's birthday party in South Texas
The Texas Rangers, a unit of the Texas Department of Public Safety, was leading the investigation. Brandley said police are on the hunt for two suspects believed to be connected to the shooting.

Knocked out: Marvel's 'Iron Fist' gets the ax
The news came as a shock to fans who enjoyed Season 2 , which was received far better than the first season. There's also Disney's upcoming streaming service, which Deadline hints could be an option.

Khabib Nurmagomedov challenges Mayweather to fight: 'There is only one king'
We have defended our honour and this is the most important thing. This one, as I said was nearly two years out. "In the jungle, there is only one king".

Number of unvaccinated kids rises
Other research has shown that states with philosophical exemptions had both higher rates of refusal and higher rates of disease. However, "if it's hard to obtain an exemption, then you have lower rates of refusal and lower rates of disease", he said.

Restaurants told to shrink pizzas in obesity fight
The Telegraph also notes that more than one in five pupils by the time they leave primary school are classed as severely obese. They follow the government plan to halve rates of childhood obesity by 2030.

Dallas Cowboys: Defensive line must step up vs. Jaguars
The Jags feature a diverse skill set at their skill positions, getting 50+ yards from 6 different receivers last Sunday. Seattle has allowed over 25 points per game in the four games they played besides their matchup against Dallas.