Sears, the chain that shaped the lives of many Americans and defined how they were shopping and living, has finally declared Bankruptcy. The company was 132 years old and had been in trouble for past few years, with the debt count increasing and increasing with each passing day. The final nail in the coffin proved to be the $134million debt that the company had to pay until Monday, which was not affordable for them.
Sears Holdings, the company that run Sears and Kmart, has been one of the many retail stores that declared Bankruptcy in the age where people are more and more inclined towards shopping from Amazon.
During the early hours of Monday morning, the bankruptcy filing was formally proceeded in the federal bankruptcy court in New York. According to the statement from company officials, they are keen on keeping the stores open that are profitable, along with the website of Sears and Kmart.
As of filing, the stores count was brought down to 700 from 1000 whereas the number of employees was reduced to 68,000 from 89,000 where the higher stats belong to February of this year.
At one side, the process of bankruptcy is proceeding while on the other hand the company is showing interest on potential bids as they state that they were looking for buyers who can take up the remaining stores. Moreover, they also said that 46 stores would be closed up until next month while in total there will be 142 shut downs till the end of this year.
The CEO position was given up by Eddie Lampert, who is the chairman and largest shareholder in the company, and therefore it would not be run by three top executives of the business. For several years, Lampert had been stating that the company is showing promise and progress towards ending the long streak of losses.
“While we have made progress, the plan has yet to deliver the results we have desired,” Lampert said in a statement Monday. He said the bankruptcy process would allow the company to shed debt and costs and “become a profitable and more competitive retailer.”
Although most of the businesses that file bankruptcy shows strong intention of showing in the business, only a few are able to do it. In past few years, the chains like Toys R Us, Sports Authority, and RadioShack are certain companies that completely vanished after filing.