Sears files for bankruptcy; will close another 142 stores

  • Sears files for bankruptcy; will close another 142 stores

Sears files for bankruptcy; will close another 142 stores

The 125-year-old retailer, an icon for generations of American shoppers, filed for Chapter 11 bankruptcy protection early Monday morning, saddled with billions of dollars of debt as it struggled to adjust to the rapid shift toward online commerce.

Lambert will still remain chairman of the board, as the company's largest investor and creditor, but a new independent director, William Transier, has been appointed due to his expertise in overseeing complex capital reorganizations.

Sears Holdings Corporation filed for Chapter 11 bankruptcy on Monday and announced that its CEO would be stepping aside for the restructuring process. The operator of Sears and Kmart stores joins a growing list of retailers that have filed for bankruptcy or liquidated in the last few years amid a fiercely competitive climate.

Rosenblum told The Post that those with the most to lose from Sears' end will be the workers who stand to lose their pensions and jobs.

Watch Sears trade in real time here.

The company has racked up $6.26 billion in losses, excluding one-time events, since its last annual profit in 2010, according to Ken Perkins, who heads the research firm Retail Metrics LLC.

"As we look toward the holiday season, Sears and Kmart stores remain open for business and our dedicated associates look forward to serving our members and customers". The original Kmart store in Garden City closed a year ago.

Sears employed about 89,000 workers in the USA as of February, compared with 246,000 people five years ago.

The Sears workforce has dwindled to about 68,000 from 302,000 a decade ago.

If Sears ends up collapsing, the obituaries will blame Internet competition for undermining the big-box department store model. It has been run over that period by the hedge fund manager Eddie Lampert, who sold off numerous firm's brands and properties but failed to win customers back, many of whom now prefer to shop online. In August, it closed 13 Kmart stores and 33 Sears locations, including the Oakland Mall and Jackson Crossing stores. "Put bluntly, it has failed on every facet of retailing from assortment to service to merchandise to basic shop keeping standards".