Sacramento Sears store to close as retailer announces bankruptcy

Alicia Cross
October 16, 2018

Sears Holdings had 89,000 employees as of February, according to a filing with the Securities and Exchange Commission - down from nearly 350,000 a decade ago - as well as 547 Sears and 432 Kmart stores. The Sears Hometown Store at 2706 Vine is not on the list of closings.

"Over the last several years, we have worked hard to transform our business and unlock the value of our assets", said Edward S. Lampert, chairman of Sears Holdings.

Kimco has been waiting to "recapture" Sears locations to either put in new tenants and lift rents to market prices or to start a new redevelopment within the shopping center itself, Bujnicki said. The company previously announced it was closing 46 unprofitable stores.

As a result of the bankruptcy, company CEO Eddie Lampert has stepped down.

It was inevitable, but feels shocking and weird all the same: Mr. Lampert's hedge fund, ESL Investments Inc., is in talks to provide another $300 million junior bankruptcy loan that would provide additional cash for the retailer's business....

The filing listed between $1 billion and $10 billion in assets, while liabilities range between $10 billion to $50 billion.

The business began as a mail order catalog in the 1880s.

In the 1980s, Sears went on a shopping spree, buying brokerage Dean Witter Reynolds and real estate company Coldwell, Banker.

New Look, Marks & Spencer and House of Fraser have also seen stores close this year.

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The filing in federal bankruptcy court in NY came in the early hours of Monday morning. Some, like Payless ShoeSource, successfully emerged from reorganization in bankruptcy court. Both retailers were forced to shutter their operations this year soon after Chapter 11 filings. Whirlpool added that 1 percent of its aggregate accounts receivable exposure was tied to Sears, and it had an "immaterial amount" of Sears-related inventory.

Like many Kmarts, the local store now carries a line of home appliances and bedding that traditionally was sold in Sears locations.

The retailing giant, which includes its eponymous department store and the Kmart discount chain, said Monday it has filed for Chapter 11 bankruptcy. The company will now be run by three of the company's top executives.

The company has been hemorrhaging money in recent years after decades as one of the biggest names in retail. It started out as a vast mail-order business selling clothes, tools, toys and even tombstones, and became the biggest retailer in the United States before being overtaken by Walmart and later Amazon.

Sears Holdings, the parent company, which owns Sears and Kmart, is among dozens of prominent retailers to declare bankruptcy in the era of Amazon.

Long-struggling Sears, once the nation's largest retailer, declared bankruptcy early Monday after losing more than $11 billion since 2011, despite cost-cutting measures and hundreds of store closures. He has so far not disclosed whether he has turned a profit or loss since he invested in Sears following years of complex financial engineering at the company.

Sears had been drowning in debt and reportedly could not afford a $134 million repayment that had been due on Monday.

Lampert is using his hedge fund to purchase the Kenmore brand from Sears.

Other reports by Free-Prsite

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