Sears, the Amazon of its day, files for bankruptcy

Modal Trigger					
				Getty Images

The bankruptcy, which Sears said would help it to restructure its business, comes after years of decline.

It's been a rough year for large brick-and-mortar stores, with Toys "R" Us failing to emerge from bankruptcy proceedings and closing all its stores.

The company, which owns the discount chain Kmart, has filed for chapter 11 bankruptcy in NY as it struggles with a debt burden of $5.6bn (£4.3bn). The company is negotiating an additional $300 million in financing from ESL Investments, a hedge fund run by Sears' former chief executive, Eddie Lampert. Mall economies haven't been very good lately anyway, and one has to wonder how many of those operators will need to get some bankruptcy relief if and when Sears collapses. 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. Since past year alone, Sears has closed more than 380 of its 894 stores, down from 2,200 stores in the USA and Canada in 2005.

In a March 2017 government filing, Sears said there was "substantial doubt" it would be able to keep its doors open - but insisted its turnaround efforts would mitigate that risk. In April and August, ESL presented proposals to acquire certain Sears assets, followed by a broader September plan for real estate transactions and asset sales. A long series of store closings has left it with under 900 today. Lampert partially spun off the company from its parent in 2012 and was Sears Canada's biggest shareholder.

The Sunday Edition: President Donald Trump Tweetstorm
Theologian Rob Lee, a descendant of the Confederate general , said he was "disheartened" to hear Trump praise his ancestor. Tyler Cantrell, a random Twitter user, was able to spot the error within minutes of watching the clip in full context.

Parts of Sears have already been through bankruptcy. Sears merged with Kmart in 2005.

Sears, which sold everything from Craftsman tools to Kenmore appliances, lost its footing in the 1980s with expansions into financial products such as banking, mortgages, insurance and credit cards.

There will be a lot of people who won't have jobs on the back end of this move, as necessary as it might be, and a lot more who have to look at management's track record and assume the rest might be gone in the near future, too.

Related News:



Most liked

Man behind 'Cornerstore Caroline' video isn't buying her apology
Mr Littlejohn told PIX-11. "He was so traumatised by the situation, he started crying, his sister started crying". Social media erupted in response to "Cornerstore Caroline", some even calling it a modern Emmett Till incident.

Albert Wilson's game-tying 75-yarder in Miami Dolphins comeback win
Unlike their game against the Bucs, the Bears' offense wasn't quick to start, finishing the first half scoreless. In the photo gallery above, take a look at what we learned during the Dolphins' victory over the Bears.

#MeToo: Film-maker Nishtha Jain accuses Vinod Dua of sexual harassment
Before I could settle down he began telling a lewd sexual joke in that soft voice, barely opening his mouth", wrote Jain. However, she lashed out at the filmmaker for dragging her name into the matter and said "it was in a awful taste".

Six dead as heavy storms hit southwestern France
The Aude river reached levels not seen in more than 100 years, the French agency responsible for monitoring, Vigicrues, said. Floodwaters were in some cases too powerful for emergency services to get through, even on boats, he said.

LEADING OFF: Red Sox seek to clean things up vs Astros
But Price ran into trouble again in the fifth, and Cora pulled the plug after a two-out walk to Tyler White on four pitches. The series will now shift back to Houston for the next three contests, beginning Tuesday with Game 3.

Black Ops 4 breaks Activision sales records
Taking a different tack, the magazine headlined its story to highlight the downturn in physical games sales. Call of Duty: Black Ops IIII launched for PlayStation 4, Xbox One, and PC on October 12.

Sen. Elizabeth Warren’s DNA Hints At Native American Heritage
Trump has mocked Warren for years, calling her "Pocahontas" as a way to denigrate her claims of Cherokee heritage. Bustamante replies: "The facts suggest that you absolutely have Native American ancestry in your pedigree".

UK, US may boycott Saudi conference over journalist's killing
News that the CEO of Uber, Dara Khosrowshahi, would pull out of the conference drew angry responses across the region. Prince Mohammed, King Salman's son, has aggressively pitched the kingdom as a destination for foreign investment.

Pope defrocks 2 Chilean bishops accused of sex abuse
Pope Francis on Saturday defrocked two Chilean bishops accused of sexually abusing minors, the Vatican said in a statement . Also on Saturday, Chilean President Sebastian Pinera visitedwith the pope at the Vatican Apostolic Palace.

Usain Bolt Scores First Professional Football Goal
Bolt had six shots overall before being substituted. "It caught me surprised and I panicked a bit and over-kicked the ball". He just looks a little bit sharper, not a great deal to be honest. "There's a slight improvement but not very much".

Butler practices again with Wolves, as opener nears
That fact was reported on Sunday afternoon after Butler participated in yet another Wolves practice. Wiggins, for his part, has never expressed any ill will toward Butler.

Lewinsky affair not an abuse of power, says Hillary Clinton
Hillary Clinton has gone on several media outlets over the past few days to bash President Trump. Bill Clinton said earlier this year that he disagreed with Gillibrand's comments.

NewsManchester United offer contract to Massimiliano Allegri
Manchester United boss Jose Mourinho has reportedly reignited his interest in World Cup finalists Ivan Perisic and Ante Rebic . Jose Mourinho is still the manager at the club but the Portuguese has come under pressure after a slow start to the season.

British royal newlyweds release official wedding photos
There is also a black and white image of the couple kissing during their carriage procession. Prince Andrew is said to have rejected the advice and insisted that his younger...

PSN direct message bug may be bricking PlayStation 4 consoles
So if your messaging settings currently allow you to receive messages from strangers, you may want to change them for now. A system bricking would apply that a factory reset wouldn't fix it, and that it would need to be sent to Sony.