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Sears to close almost 150 more stores, files for bankruptcy

16 October 2018
Sears to close almost 150 more stores, files for bankruptcy

Sears' bankruptcy filing will have an impact on Kentucky, as the company is planning to close four of its stores as a result of the announcement.

The company announced that store closing sales would begin at the selected locations within two weeks in an effort to liquidate inventory. He's shuttered hundreds of money-losing stores, cut more than US$1 billion in annual expenses, and spun off units such as Lands' End.

The filing, made in U.S. Bankruptcy Court for the Southern District of NY, lists total assets as $6.937 billion and total debts as $11.339 billion as of August 4.

A reorganization will keep rental income flowing but some locations are so valuable that outside investors could gain control of a site in an auction and not the REITs who are now Sears' landlords, Rothman said.

As of May, it had fewer than 900 stores, down from a 2012 peak of 4,000.

The company said employees' wages and benefits will continue to be paid and the firm is working with its vendors to ensure shelves remain stocked. The metro-east's nearest Kmart, in the Flower Valley Shopping Center in Florissant, Missouri, will close.

The longtime American shopping mall anchor is trying to stave off a complete shutdown of not only Sears department stores but the Kmart stores it also owns. Sears Holdings was doing "integrated retail" such as "order online, pick it up at the store", earlier than many of its competitors.

"What Sears did was make big-city merchandise available to people in small towns", he said.

But while Sears is definitely the more historical brand of the two, it's hard to imagine the same kid of consumer feeling driving the brand to ultimately survive in anything like its current form.

But any movement toward bankruptcy seemed to gain momentum last week with reports that Sears had hired New-York based M-III Partners to prepare the filing.

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

Sears said 142 stores would close in the next three months. Edward S. Lampert, the company's largest shareholder, has stepped down as CEO but will remain chairman of the board.

The company is unable to pay a $134 million debt payment, due Monday.

Sears Holdings ($SHLD) reached a deal with lenders over the weekend that will reportedly require it to shut almost 150 stores immediately as it reorganizes. That could boost same-store sales at many chains. Once a symbol of the American lifestyle that prided itself on selling everything to everyone, it has been losing out to rival retailers Walmart and Amazon. The first Sears Roebuck catalog, which sold watches and jewelry, was printed in 1896. In many cases, the Sears liquidation sale prices are along the lines of what shoppers have seen regularly in weekly circulars and special sales events.

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