Majors

Sears, a Retail Institution Since 1893, Declares Bankruptcy

MajorsOct 15, 2018

Sears, a Retail Institution Since 1893, Declares Bankruptcy

The company is looking to reorganize and emerge as a smaller retailer.

2017_Sears-store.jpg
Founded in 1893 by Richard W. Sears and Alvah C. Roebuck, Sears started as a mail-order catalog business selling watches to farmers. Today, Sears Holdings Corp. has 687 Sears and Kmart stores in 49 states, 400 of which it is aiming to keep open.

White Plains, N.Y.—Sears, an icon of American retail that started as a mail-order watch business 125 years ago but has been in decline for decades, has declared bankruptcy.

The Chapter 11 filing came early Monday morning in federal bankruptcy court in White Plains, N.Y., with Sears Holdings Corp. indicating that it plans to reorganize and emerge, albeit as a smaller retailer.

In the filing, the company states it wants to find a buyer that will continue to operate the approximately 400 Sears and Kmart stores that it says are economically viable.

Of the other 287 stores, about half—142—will close and begin going-out-of-business sales right now in order to save the company money and take advantage of the holiday season. Sears said it will evaluate the remaining stores as the Chapter 11 case moves along.

The company also plans to sell off non-core assets, such as intellectual property like the Kenmore appliances and DieHard automotive battery brands, and specialty businesses, like Sears Auto Centers.

In a declaration from Chief Financial Officer Robert A. Riecker filed in conjunction with the bankruptcy petition, he states that filing Chapter 11 “present(s) an opportunity for Sears to once again transform its business and to position itself for success in the 21st century.

“The debtors hope that the company will emerge from these Chapter 11 cases, whether pursuant to a chapter 11 plan of reorganization or a successful sale process, as a streamlined and profitable version of itself.”

Founded in 1893 by Richard W. Sears and Alvah C. Roebuck, Sears started as a mail-order watch business and later expanded to sell housewares and even entire houses. It catered to customers in remote rural areas who otherwise would not have had access to a wide range of goods.

The company began opening brick-and-mortar stores in urban areas in the 1920s and 1930s when more people started moving into cities, then migrated to the suburbs to anchor malls in the ‘60s and ‘70s as the country’s population shifted once again.

Sears became a leading retailer of tools, appliances, lawn and garden care products, and automotive repair and maintenance.

In the 1990s, as “big-box” retailers began to grow in popularity and steal market share from traditional department stores, Sears added a big-box chain to its stable by merging with Kmart.

In his declaration, Riecker stated that while Sears has adapted its business to navigate population trends and consumer

preferences many times over the years, its efforts to adjust to the realities of retail today—including closing stores and putting more money into online operations—have fallen short.

As it has been forced to close stores while losing market share to competitors, the retailer’s revenues have declined 54 percent over the past five years, totaling $16.7 billion in fiscal year 2017, while its debt has swelled to more than $5 billion.

Sears Holdings Corp.’s official bankruptcy filing, made in U.S. Bankruptcy Court for the Southern District of New York, lists $7 billion in assets but $11.3 billion in liabilities.

In the wake of the company’s Chapter 11 filing, CEO Eddie Lampert has stepped down, though he will remain chairman of the board.

The company has created an office of the CEO to manage day-to-day operations that is staffed by: Riecker; Leena Munjal, chief digital officer, customer experience and integrated retail; and Gregory Ladley, president of apparel and footwear.
Michelle Graffis the editor-in-chief at National Jeweler, directing the publication’s coverage both online and in print.

The Latest

Future Fortune sapphire ring
TechnologyMar 28, 2024
Pinterest’s 2024 Wedding Report Is Out

The report shows that couples are searching for vintage and antique rings, gold jewelry, pearls, and colorful pieces.

David Ettinger
IndependentsMar 28, 2024
David Ettinger of Bechdel Jewelers Dies at 69

He’s remembered as a “font of passion,” leaving behind a legacy of dedication to his craft and community.

Jewelers of America logo
IndependentsMar 28, 2024
JA to Host Series of Learning Workshops

The first one will take place next month during the Jewelers of Louisiana’s and Mississippi Jewelers Association’s conventions.

Jewelers of America Fly In Washington, D.C.
Brought to you by
How Jewelers of America Represents Your Business

For over 30 years, JA has advocated for the industry, fought against harmful legislation and backed measures that help jewelry businesses.

Jaeger-LeCoultre Madison Avenue NYC store
WatchesMar 28, 2024
Peek Inside Jaeger-LeCoultre’s Revamped NYC Flagship

The redesigned boutique features interactive displays and a workshop space for hands-on learning about watchmaking.

Weekly QuizMar 28, 2024
This Week’s Quiz
Test your jewelry news knowledge with this short test.
Take the Quiz
Asian Star’s diamond manufacturing facility in India
SourcingMar 27, 2024
Compliance, Caution, and Concern: The Current Outlook of Indian Diamantaires

There is a willingness to comply with new government-mandated regulations, with an insistence that they should be practical and realistic.

Kira Diam solar plant
Lab-GrownMar 27, 2024
Indian Lab-Grown Diamond Manufacturers Keep Growing

A combination of factors is driving growth in the industry despite the precipitous drop in prices across the board.

BTYB-HoBrothers-updated.png
Brought to you by
The Scalable, Professional, and Effortless Solution for High-Demand Custom Jewelry Retailers

Ho Brothers offers scalable solutions for the future of custom jewelry.

Bharat Ratnam, a Mega Common Facilitation Centre (CFC)
SourcingMar 27, 2024
Reinvigorating SEEPZ, the Epicenter of India’s Studded Jewelry Exports

The zone’s modernization will enhance and increase India’s jewelry manufacturing capabilities while aiding small and mid-sized businesses.

SRK Empire and SRK House
Policies & IssuesMar 27, 2024
SRK Exports’ Journey Toward Net Zero Impact

By the end of this year, SRK’s diamond manufacturing complexes will achieve net zero emissions, one of an impressive array of achievements.

Georgia May Jagger Tommy Hilfiger ad campaign
FinancialsMar 27, 2024
Movado’s Full-Year Sales Sink 11%

The company plans to invest $25 million in marketing initiatives to boost awareness around its namesake and licensed brands.

Hand holding shopping bags
SurveysMar 27, 2024
Consumer Confidence Held Steady in March

Optimism about the current state of the economy was offset by anxiety around inflation and the political environment.

Bernadette Mack
Policies & IssuesMar 27, 2024
Mercury Free Mining Hires Bernadette Mack

The former WJA executive director is MFM’s new managing director.

April Is Diamonds Do Good Month
Policies & IssuesMar 27, 2024
Diamonds Do Good Announces Its April Initiative

DDG encourages retailers to educate customers on the positive impact of purchasing natural diamonds.

National Jeweler columnists Duvall O’Steen and Jen Cullen Williams
ColumnistsMar 26, 2024
Creative Connecting: AI Tools and Tips for Social Media

Jen Cullen Williams and Duvall O’Steen explore how jewelers can save time and money by using AI to analyze engagement and create content.

Interior of Miami Lakes Jewelers
IndependentsMar 26, 2024
Miami Lakes Jewelers to Close After 37 Years

The Florida store’s owner Miguel Gonzalez is retiring.

 International Gemological Institute
GradingMar 26, 2024
IGI Announces Tech for ID’ing Lab-Grown Colored Diamonds

The lab stresses the importance of accurate identification, as the difference in price is “substantial.”

Kendra Scott lab-grown diamond jewelry
CollectionsMar 25, 2024
Kendra Scott Debuts Lab-Grown Diamond Fashion Jewelry

The brand also plans to expand its retail footprint from 138 to 200 stores over the next three years.

Instappraise logo NAJA logo
Events & AwardsMar 25, 2024
NAJA, Instappraise Offering Scholarships for Aspiring Jewelry Appraisers

One is reserved for a NAJA member, the other for a non-member.

Carie Lehrke and Megan Mattice
MajorsMar 25, 2024
Borsheims Announces New VP of HR, Assistant Manager

Longtime employees Carie Lehrke and Megan Mattice have received promotions.

My Next Question graphic vintage jewelry webinar
Recorded WebinarsMar 22, 2024
Watch: How to Buy and Sell Vintage Jewelry

Three guests joined National Jeweler and Jewelers of America to discuss trending time periods, spotting reproductions, and more.

Chris Clipper and Robert Lepere
MajorsMar 22, 2024
David Yurman Announces New CFO, Chief People Officer

Chris Clipper and Robert Lepere join the company with 50 years of combined experience.

Nakard pyrite earrings
CollectionsMar 22, 2024
Piece of the Week: Nakard’s Pyrite Earrings

The trendy, metallic earrings wink at classic spring colors.

Stock image of police cars with their lights on
CrimeMar 21, 2024
Sparks Fly as Burglars Lose Safe on California Freeway

JSA said a man and woman pulled the safe out of an Oakland jewelry store but couldn’t quite get it into their van.

Grizzly Mining rough emeralds
SourcingMar 21, 2024
Grizzly Sells 4,145-Carat Emerald for Over $1M

The miner’s March auction generated $19 million.

Helen McCluskey
MajorsMar 21, 2024
Signet Jewelers Names New Board Chair

Helen McCluskey will succeed H. Todd Stitzer when he meets his 12-year term limit in June.

Julia Roberts wearing a Chopard necklace
CollectionsMar 20, 2024
Julia Roberts Co-Designs New Chopard Jewelry Collection

“Chopard x Julia Roberts” showcases the first gems cut from the 6,000-carat-plus “Insofu Emerald."

×

This site uses cookies to give you the best online experience. By continuing to use & browse this site, we assume you agree to our Privacy Policy