Sears files for bankruptcy as CEO steps down
- Author: Anthony Vega Oct 16, 2018,
Oct 16, 2018, 4:39
Sears plans to close two locations in the Bay Area after the once-dominant retail chain announced it was filing for bankruptcy Monday.
But it said that it's looking for a buyer for a large number of its remaining stores and that it will close at least 142 stores near the end of this year. 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.
Sears was built on two brilliant observations.
The number of stores peaked in 2012 at 4,000, including its Sears Canada division that was later spun off.
Sears already decimated stock tanked further Monday, closing at 31 cents per share, down about 24 percent. According to Sears Holdings, there are plans to close the Prince Frederick Kmart.
"Everything I have done as an investor in Sears Holdings has been with the goal of helping the company and its people succeed", Mr. Lampert said in a statement provided by his hedge fund.
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. Sears was once the country's biggest retailer, the go-to destination for everything, from Toughskins jeans to Craftsman tools, Kenmore washing machines, Allstate insurance and Discover credit cards.
No. Sears says it will make every effort to ensure a timely delivery for your order.
Will appliances purchased at Sears still be serviced by Sears Homes Service technicians? .
Chapter 11 bankruptcy protection postpones a United States company's obligations to its creditors, giving it time to reorganise its debts or sell parts of the business.
A bankruptcy certainly feels like a failure, and to the Sears creditors who were expecting a $134 million payment today, it is one.
Edward S. Lampert has stepped down from his role as CEO of the company, effective immediately.
St. Joseph's Sears closed its location in the East Hills Shopping Center in May 2017.
Richard Sears had launched Sears Watch Co in 1886 to sell watches by mail. While other traditional retailers enjoyed strong holiday sales, Sears and Kmart both reported sharp drops.
Sears' stores helped reshape America, drawing shoppers away from the traditional Main Street merchants.
CEO Ed Lampert, a hedge fund titan who acquired the company in 2005, became known for successfully spinning off some of Sears' most well-known brands, like Orchard Supply and Land's End, even as the iconic department store itself languished. The company now has 506 stores in operation.
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.