Sears, once considered one of the biggest retail store, announced it was closing almost 150 stores as it filed for bankruptcy Monday. In the history of departmental stores, Sears was a pioneer. Sears has been a part of the shopping places for all especially during Black Friday.
Because the retail industry has been changing in the past ten yeas, Sears couldn’t cope up with the threats from online stores especially Amazon. The company already has shut down hundreds of outlets in the past years as e-commerce players are getting in demand.
“The Company and certain of its subsidiaries have filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of New York,” a statement by Sears Holdings Corporation said.
Edward S. Lampert, Chairman of Sears Holdings, said the insolvency filing would give the company the “flexibility to strengthen its balance sheet” and enable it to accelerate a strategic transformation.
The 142 stores will be closed in the end of the year in addition to what was announced of the closure of 46 stores by November. Surely, Sears will remain a part of the Black Friday 2018 in which shoppers will be going to get the best deals again.
Sears had received a bost of commitments for $300 million in debtor-in-possession financing and it was negotiating for additional $300 million.
The last time Sears gain profits was way back in 2018. According to analysts, the store needs to make more than $1 billion a year to keep going as its sales are continue to decline. There are still fewer than 900 stores open in the US with under 90,000 employees.