Sears, One-Time Face of American Retail, Files for Bankruptcy

Cornelia Mascio
Ottobre 15, 2018

The company once dominated the American landscape, but whether a smaller Sears can be viable remains in question.

Lampert's has been loaning out his own money for years and has put together deals to prop up the company, which in turn has benefited his own ESL hedge fund. Lampert personally owns 31 percent of the company's shares. The company operates about 700 Sears and K-Mart stores. Sears recently added a restructuring expert as a company director for an additional layer of guidance on how to navigate a bankruptcy filing.

Sears was once the largest retailer in the nation. The company created an Office of the Chief Executive - responsible for day-to-day operations - that will be filled by three officers.

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.
It started out as a vast mail-order business selling clothes, tools, toys and even tombstones, and became the biggest retailer in the USA before being overtaken by Walmart and later Amazon. According to the Wall Street Journal, Sears has hired M-III Partners, a boutique advisory firm specializing in seeing companies through bankruptcies and restructuring, The company is also talking to lenders about providing it with debtor-in-possession financing, CNBC reported.

Meanwhile, Sears workers are nervous about what kind of severance they'll receive if their store closes. That's the toughest part of this of all, of course; my first job outside of flipping burgers or making pizzas was at the Sears in Cerritos, California, where I worked for about eighteen months.

There are just four Sears open in metro Detroit: in Livonia, Lincoln Park, Novi and Westland. The headquarters later moved to Hoffman Estates, Illinois.

Lampert's efforts to keep Sears out of bankruptcy have included shedding hundreds of unprofitable stores. The company has said it's the nation's largest provider of home services, with more than 11 million service calls a year.

Altre relazioniGrafFiotech

Discuti questo articolo

Segui i nostri GIORNALE