Sears, once the largest retailer in the United States, files for bankruptcy protection
The company had a $134-million payment due on Monday – a sum it could not afford.
Sears, once the largest retail store chain in the United States, has filed for bankruptcy protection from creditors after 125 years of operations. The company had a $134-million (about Rs 992 crore) payment due on Monday. Its debts had soared to $5.6 billion (Rs 40,000 crore) by late September, and its last profitable year was eight years ago, according to CNBC.
The company made a filing under the Chapter 11 of the United States Bankruptcy Code on Monday. It listed $6.9 billion in assets and $11.3 billion in liabilities in documents filed in the bankruptcy court, Reuters reported. The company’s fate depends on the willingness of creditors and suppliers to keep it afloat.
The company said it intends to stay in business through stores that are profitable and its online shopping sites, reported CNN. But it said it is looking for a buyer for several stores and it will close an additional 142 stores by year-end. Sears had already announced the closure of 46 stores in November.
Sears’ shares, which were over $100 each year after billionaire hedge fund manager Edward Lampert took over in 2004, closed at about 41 cents on Friday. Lampert gave up his title of chief executive officer as part of the filing.
Richard Sears had launched Sears Watch Co in 1886 to sell watches by mail. The company later became Sears, Roebuck and Co and began selling everything from homes to hardware, becoming the largest retailer in the country until Walmart replaced it in 1990.