Sears Files For Bankruptcy

2024 Author: Steven Freeman | [email protected]. Last modified: 2023-12-17 08:15

As we already knew, unfortunately at the beginning of the year Sears announced that it would close dozens of stores due to the poor performance they had in 2017. And it is that times have changed and the stores that were once a symbol in this country have been disappearing. During 2018, both Sears and Kmart, which also belongs to the company- have closed several establishments in order to improve their finances and restructure their digital platform. However, these efforts apparently have not borne much fruit, so the company decided to file for bankruptcy.

Sears Holding Corp filed for bankruptcy in a White Plains, New York court and so did Kmart Holding Corp.

According to the documents, Sears has a year-old debt filed (the petition) will give [Sears] the flexibility to strengthen its balance sheet, allowing the company to accelerate its strategic transformation,”said Edward S. Lampert, president of Sears. "Our goal is to achieve effective restructuring as soon as possible by working closely with our creditors and to be in a better position to execute our strategy and priorities."

Although the company has been making changes to keep the stores standing for several years, the reality is that the last time they had a profitable year was in 2010.

Kmart has been facing the same problems. In fact, in 2005 when the two companies joined forces, there were some 3,500 stores between the two. Now only about 700 remain after so many others close in November.