Sears Holdings files for bankruptcy*

[retailisking]

The end is near...
https://www.wsj.com/articles/sears-hires-advisers-to-prepare-bankruptcy-filing-1539136189

*Subject title changed to reflect official filing

[Kmart4life]

https://www.thestreet.com/markets/sears-hits-record-low-as-restructuring-expert-joins-board-ahead-of-debt-deadline-14738685?puc=yahoo&cm_ven=YAHOO&yptr=yahoo

[danfifepsu]

when will the rest close?

[retailisking]

They could file as soon as tomorrow (Friday Oct 12) and creditors including big banks are pushing for total liquidation. I'd estimate liquidation sales will start by next month (especially if Sears is unable to line up DIP financing) and end early in the new year unless there are complications to the case.

[shore72]

It seems to me that this would be the best time of year to extract maximum dollars out of the wreck that is Sears Holdings. Kicking the can until after Christmas shopping is over can't help. Sad to see, regardless.

[TheFugitive]

They could file as soon as tomorrow (Friday Oct 12) and creditors including big banks are pushing for total liquidation. I'd estimate liquidation sales will start by next month (especially if Sears is unable to line up DIP financing) and end early in the new year unless there are complications to the case.

Yep.  The level of trust between creditors and Sears management is so low that this may indeed be one of those rare situations where the court agrees to force them into a Chap. 7 liquidation.

[retailisking]

Looks like Sears might get that DIP financing it needs to continue operating through Christmas, though an unspecified number of stores are expected to close immediately; a bankruptcy filing is expected over the weekend. The article talks about seeking a buyer, but in the end I think this will turn out like Bon-Ton with liquidators the only bidders
https://www.cnbc.com/2018/10/12/sears-nears-a-bankruptcy-deal-that-could-keep-it-open-this-christmas.html

[Amesguy2000]

It will probably turn out exactly like Bon ton sadly. But i hope it would get a buyer.. heck maybe lampert would get the boot if someone besides a liquidator firm gets it.. But still in the end Lampert will get the boot as well as the employees... But for the employees I'd say we care for them more then Lampert.

[Amesguy2000]

Sears Centre to keep namesake till 2022

http://www.chicagotribune.com/business/ct-biz-sears-centre-naming-rights-extended-1013-story.html

[TheFugitive]

It will probably turn out exactly like Bon ton sadly. But i hope it would get a buyer.. heck maybe lampert would get the boot if someone besides a liquidator firm gets it.. But still in the end Lampert will get the boot as well as the employees... But for the employees I'd say we care for them more then Lampert.

Employees always take it up the shorts in these deals.  I lived that for far too many years.

So they re-upped their naming rights on an arena?  Their creditors will NOT be pleased!

[danfifepsu]

they will close 150 stores immediately (but when as the stores have liquidation sales and what about them), and 250 their fate unknown and leave 300, by that they may as well have none I feel. Kmart / Sears filing for bankruptcy isnt earthshattering.

[Zayre88]

More massive store closings on the way for sure.

I remember when Kmart filed for bankruptcy, it closed 284 stores (out of 2,100) not long after. It then closed 326 more before emerging from Chapter 11 in 2003.

There's only about 360 Kmart stores and 482 Sears stores left. The two chains can only get so small, especially Kmart.

[Kmart4life]

It's sad but Eddie Lampert is an idiot who obviously does not know how to run a retail chain, and in my honest opinion he should have left Sears to meet it's fate and focused on making Kmart a respectable chain once again.

[retailisking]

It's official - Sears Holdings files for bankruptcy; Lampert is out as CEO
https://www.wsj.com/articles/sears-files-for-chapter-11-bankruptcy-1539579819?fbclid=IwAR0eU4RUwGZP7ReVlUKpSONX3eICn4bJJaMXmrM4mz-nZ5zOj22HtXY-t84

Here's the official press release
https://searsholdings.com/press-releases/pr/2116

[TheFugitive]

It's sad but Eddie Lampert is an idiot who obviously does not know how to run a retail chain, and in my honest opinion he should have left Sears to meet it's fate and focused on making Kmart a respectable chain once again.

Peter Hollis was Ames' CEO when I worked for the company.  He did the Zayre deal which
led into our first bankruptcy.

He was also CEO of Zayre, Fishers Big Wheel and Jamesway, all of which went belly-up.

And yet he never seemed to have a problem in finding another retail chain to hire him as their CEO.

[Amesguy2000]

The List
https://www.usatoday.com/story/money/2018/10/15/sears-holdings-bankruptcy-store-closures/1645971002/

[M.R.CALDOR]

Fellow member Brammy and I will be visiting (and filming for posterity) the remaining locations in Connecticut. This is a dark day for retail. Sad its come to this.

[TheFugitive]

The List
https://www.usatoday.com/story/money/2018/10/15/sears-holdings-bankruptcy-store-closures/1645971002/

Kmart on Route 51 in Pleasant Hills, PA is on the list.
That literally leaves no stores within any reasonable driving radius of my home.

End of an era for me.

[danfifepsu]

142 to close. in New England, Sears in Fox Run Mall in Newington NH is closing as well as Natick Mall, Milford and Waterford CT and KMart in Madawaska despite being the ONLY STORE. Georgia, Kansas and Arkansas are losing their last Kmarts.  many markets and counties losing the last.

[BillyGr]

It's sad but Eddie Lampert is an idiot who obviously does not know how to run a retail chain, and in my honest opinion he should have left Sears to meet it's fate and focused on making Kmart a respectable chain once again.

Peter Hollis was Ames' CEO when I worked for the company.  He did the Zayre deal which
led into our first bankruptcy.

He was also CEO of Zayre, Fishers Big Wheel and Jamesway, all of which went belly-up.

And yet he never seemed to have a problem in finding another retail chain to hire him as their CEO.

Don't forget their last one (Joe Ettore) who seemed to fall into that same category.

Of course, in some cases it may have been the chain itself that was already in trouble when they got the position and not just something they did (like what you mention with the Zayre purchase).

[M.R.CALDOR]

Here is our walkthrough of the Meriden, CT Sears.

https://www.youtube.com/watch?v=T19fGEd4pFk

[retailisking]

Here's the landlord perspective on the Sears bankruptcy; it could take a while for this case to work its way through the courts, but the resolution could be positive for many owners. In general, Sears landlords stand to do better without them than Kmart landlords.
http://cbreemail.com/rv/ff00e1acd0746b032e05a48bda418521150a1370

[retailisking]

142 to close. in New England, Sears in Fox Run Mall in Newington NH is closing as well as Natick Mall, Milford and Waterford CT and KMart in Madawaska despite being the ONLY STORE. Georgia, Kansas and Arkansas are losing their last Kmarts.  many markets and counties losing the last.

Seritage is the landlord of the Madawaska store. The Kmart is the only major retailer in Madawaska, but that town is in effect a suburb of Edmunston, New Brunswick, so much so that the Madawaska Historical Museum is actually located on the Canadian side! A Sears Holdings spreadsheet indicates that it was built in 1977, which I believe was originally Zayre. Edmundston has a Walmart Supercentre as well as an Atlantic Superstore (Loblaw), a Canadian Tire and a Rona (a home improvement chain owned by Lowe's.) SHLD rejected the leases of the now-closed Lilac Mall (Rochester, NH) and Aroostook Centre Mall (Presque Isle, ME) Kmarts.

[danfifepsu]

142 to close. in New England, Sears in Fox Run Mall in Newington NH is closing as well as Natick Mall, Milford and Waterford CT and KMart in Madawaska despite being the ONLY STORE. Georgia, Kansas and Arkansas are losing their last Kmarts.  many markets and counties losing the last.

Seritage is the landlord of the Madawaska store. The Kmart is the only major retailer in Madawaska, but that town is in effect a suburb of Edmunston, New Brunswick, so much so that the Madawaska Historical Museum is actually located on the Canadian side! Edmundston also has a Walmart Supercentre. SHLD rejected the leases of the now-closed Lilac Mall (Rochester, NH) Aroostook Centre Mall (Presque Isle, ME) Kmarts.

well whatll happen to the Florida Keys as they only have Kmart? I hope Target as again that matches that area's demographics more than Walmart.

and I bet the last straw is a disastrous Christmas Season and then they are forced to Liquidate.

[Zayre88]

Seritage is the landlord of the Madawaska store. The Kmart is the only major retailer in Madawaska, but that town is in effect a suburb of Edmunston, New Brunswick, so much so that the Madawaska Historical Museum is actually located on the Canadian side! A Sears Holdings spreadsheet indicates that it was built in 1977, which I believe was originally Zayre. Edmundston has a Walmart Supercentre as well as an Atlantic Superstore (Loblaw), a Canadian Tire and a Rona (a home improvement chain owned by Lowe's.) SHLD rejected the leases of the now-closed Lilac Mall (Rochester, NH) and Aroostook Centre Mall (Presque Isle, ME) Kmarts.

Madawaska's Kmart was most likely a Grants based on the style of the building. Zayre was located where Marden's is today.

Madawaska will only have a Family Dollar, Marden's, Shop'n save and a Rite Aid with no actual department store. People with a passport will be able to go shop in Edmundston indeed.

[AmesNewington]

Here is our walkthrough of the Meriden, CT Sears.

https://www.youtube.com/watch?v=T19fGEd4pFk

Every time I go, the store isn't completely dead. Of course I have went on the weekends and on Labor Day, but there are always a handful of customers shopping. Although I will say most of the shoppers were in the clothing depts. The Optical was busy too when I went. I guess part of me doesn't want to see this store go. I do understand it is not as busy as it once was. But if they had gotten their act together, it would still be a viable store. They offer decent merchandise.

[danfifepsu]

I just have a feeling that they will have a disastrous Xmas season and the creditors then will push to liquidate and January-February they will announce they will close all and the last closes early Spring.

[Zayre88]

https://www.bnnbloomberg.ca/former-sears-ceo-alan-lacy-on-what-brought-down-the-retail-icon-1.1155309

Former Sears CEO Alan Lacy on what brought down the retail icon

[retailisking]

Sears has burned through much of their existing post-petition financing and will need another cash infusion in the next 15 days if they are to survive beyond that. Lampert appears to hold the key, but only if he can win the approval of creditors.
https://www.bloomberg.com/news/articles/2018-10-19/sears-burns-cash-while-betting-on-lampert-loans-for-survival

[retailisking]

Madawaska's Kmart was most likely a Grants based on the style of the building. Zayre was located where Marden's is today.

Madawaska will only have a Family Dollar, Marden's, Shop'n save and a Rite Aid with no actual department store. People with a passport will be able to go shop in Edmundston indeed.

Thanks for pointing out the origins of the Kmart building; I read an article saying that the building dated from 1977 and noted Madawaska as one of Zayre's locations in a 1977 print ad and drew the connection. I imagine that Dollar General will have a definite interest in coming into the market.