{"id":60093,"date":"2019-01-10T10:13:03","date_gmt":"2019-01-10T10:13:03","guid":{"rendered":"http:\/\/dominiclevent.com\/blog\/?p=60093"},"modified":"2019-04-17T17:09:42","modified_gmt":"2019-04-17T17:09:42","slug":"us-retail-giant-sears-seeks-liquidation-reports-say","status":"publish","type":"post","link":"https:\/\/dominiclevent.com\/blog\/us-retail-giant-sears-seeks-liquidation-reports-say\/","title":{"rendered":"US retail giant Sears seeks liquidation, reports say"},"content":{"rendered":"


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Sears, the US department store chain that once dominated US shopping malls, may be getting a reprieve.<\/p>\n

The firm had been expected to ask a bankruptcy judge for permission to liquidate after failing to reach a deal with chairman Edward Lampert over a $4.4bn (\u00a33.5bn) takeover.<\/p>\n

But after last minute negotiations, the firm said on Tuesday it would consider a revised offer from Mr Lampert, which would keep about 425 stores open.<\/p>\n

The court must still approve the deal.<\/p>\n

Sears did not disclose details of Mr Lampert’s new bid, which it will decide whether or not to accept at an auction planned for 14 January. <\/p>\n

To proceed, Mr Lampert must submit a deposit of about $120m tomorrow.<\/p>\n

Sears Holdings – which also owns Kmart – first filed for Chapter 11 bankruptcy in October, seeking court protection to reorganise its debts or sell parts of the business.<\/p>\n

The 126-year-old firm had almost 690 stores and 68,000 employees when it filed for bankruptcy.<\/p>\n

Should liquidation go ahead, many of those would lose their jobs.<\/p>\n

However, retail analysts say some parts of the business could be salvaged from any liquidation, such as its home services unit.<\/p>\n

In a tweet on Monday, the firm’s social media team said: “We may be slowing down, but we are not out of the race just yet. Don’t count us completely out. Happy Shopping!”<\/p>\n

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Media caption<\/span>Sears struggles for shopping relevancy<\/figcaption><\/figure>\n

Sears traces its origins to a firm founded by Richard Warren Sears and Alvah Curtis Roebuck in 1886 as a mail order catalogue company. <\/p>\n

It opened its first retail locations in 1925 and eventually became a fixture in shopping malls across the US.<\/p>\n

It was America’s largest retailer by revenue until 1989, when Walmart overtook it<\/a>,<\/p>\n

In recent years, the company has suffered, along with many other traditional retailers, from rising online competition from firms such as Amazon. <\/p>\n

Mr Lampert is the company’s former chief executive, its landlord, and biggest investor and creditor. His hedge fund, ESL Investments, took a stake in Sears in 2004, later combining it with Kmart.<\/p>\n

Critics say the firm, under his leadership, failed to invest in its stores, while taking on rising debt.<\/p>\n

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Neil Saunders, managing director of GlobalData Retail, said: “Reports of Sears headed to liquidation suggest that the much-storied retailer is now at the end of its long road to collapse. <\/p>\n

“Its recent journey to this point has been characterised by incredibly poor strategic decisions, chronic underinvestment and continuous financial machinations designed to keep the company afloat. <\/p>\n

“All of this impacted trading, which has remained dire, making Sears more like a patient in a coma than a fully functioning retailer.”<\/p>\n

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Sears became irrelevant <\/h2>\n

By Samira Hussain, BBC New York business correspondent: <\/strong><\/p>\n

Many stores have come and gone but the demise of a former titan like Sears, signals the end of an era in retail. <\/p>\n

When my family needed a new appliance, we would head to Sears. I remember running through the huge store with my brother as my parents looked at new refrigerators or washing machines or vacuum cleaners. <\/p>\n

When I got older, I would head to Sears to buy presents from my mum. (The toaster went down badly but the bottle of Chanel No 5 was a hit). <\/p>\n

But ask me now when was the last time I walked into a Sears store, and I really couldn’t say. Part of the problem is the storied retailer did not keep up with the competition – and not just online competitors such as Amazon, but even bricks and mortar stores such as Walmart and Target.<\/p>\n

After 126 years, it’s sad to see the once-mighty Sears become irrelevant. But that’s capitalism.<\/p>\n

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The rise and fall of Sears<\/h2>\n

1893:<\/strong> Richard Sears and Alvah Roebuck start a new mail order business named Sears, Roebuck and Co. <\/p>\n

1925:<\/strong> Sears opens its first retail store in Chicago. <\/p>\n

1973:<\/strong> Sears’ new headquarters tower – the world’s tallest building at the time – opens in Chicago.<\/p>\n

1989:<\/strong> Walmart surpasses Sears in monthly sales. <\/p>\n

2004:<\/strong> Eddie Lampert’s hedge fund, ESL Investments, takes a stake in Sears, later combining it with Kmart. <\/p>\n

2006:<\/strong> The firm starts an uninterrupted streak of annual sales declines.<\/p>\n

2018:<\/strong> The firm starts bankruptcy proceedings.<\/p>\n<\/p><\/div>\n


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