So many iconic retail companies we have grown up with are slowly fading away. The most recent and big name company to file for bankruptcy after over 100 years in service is Sears.
Although Sears Holdings Corp. controlling shareholder, Edward Lampert, spent years keeping the retailer out of bankruptcy court, they unfortunately had to file for bankruptcy protection after years of struggle and many losses on Monday.
Lampert filed for a $300 million lifeline and a quick chapter 11 sale in an effort to keep control of its remains and keep the retailer open through the holiday season. Sears said in court papers it faces catastrophic consequences if it cannot repair its supply chain and keep merchandise flowing to the company’s stores and warehouses. Sears faces potential liens if it can’t pay logistics companies their owed millions of dollars over the coming weeks.
The century-old retailer once dominated U.S. shopping malls, but now, around 200 vendors have stopped shipping goods to its stores in the past two weeks. There is also a plan to close about 142 of its 700 stores left by year-end and sell its best-performing stores in an auction in January to buyers that will keep them operational.
Lampert also stepped down as Sears CEO on Monday but will remain chairman. His intention for filing bankruptcy protection is an effort to restore Sears to its glory days.
Sears was a big deal for many growing up, and even President Donald Trump has something to say about the retailer.
“For somebody of my generation, Sears Roebuck was a big deal… Sears has been dying for many years, it has been obviously improperly run for many years, and it’s a shame,” U.S. President Donald Trump told reporters on Monday.
By: Maytinee Kramer
