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

Gina Drosos, Joan Hilson, and Jamie Singleton
EditorsMar 18, 2024
Q&A: Signet CEO Gina Drosos on Natural Diamonds

Drosos shared her top takeaways from a recent Botswana trip and her insights into the natural diamond market.

The Jewelry Symposium logo
Events & AwardsMar 18, 2024
The Jewelry Symposium Launches Inaugural Scholarship

The deadline to apply is March 29.

Brilliant Earth x Logan Hollowell Bloom earrings
FinancialsMar 15, 2024
Brilliant Earth Posts Record Sales, Orders in 2023

CEO Beth Gerstein spoke about the growing appeal of its non-bridal fine jewelry and its expansion plans on its recent earnings call.

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.

Arkansas crater of diamonds eclipse tickets
SourcingMar 15, 2024
Crater of Diamonds State Park Selling Eclipse Tickets

Ticketholders can dig for diamonds in the Arkansas park ahead of the eclipse viewing event on April 8.

Weekly QuizMar 14, 2024
This Week’s Quiz
Test your jewelry news knowledge with this short test.
Take the Quiz
Lotus Tiara
CollectionsMar 15, 2024
Piece of the Week: The Lotus Tiara

The versatile jewel pairs ancient Egyptian inspiration with a modern design.

Stock image of rough diamonds mined by De Beers
SourcingMar 14, 2024
De Beers Says Retailers Are ‘Restocking Conservatively’

The company’s rough sales improved for the third sales cycle in a row.

GIA id100
Brought to you by
Full Disclosure at Your Fingertips

Distinguishing natural diamonds from laboratory-grown stones – now more available than ever – has been difficult for jewelers. Until now.

Gemological Institute of America logo
GradingMar 14, 2024
GIA Has a New Scholarship for High School Students in San Diego

The spring application window closes on March 31.

15.51-Carat Yellow Diamond
AuctionsMar 14, 2024
Phillips Hong Kong to Auction 15.51-Carat Yellow Diamond

It’s estimated to sell for up to $1.3 million at the upcoming sale on March 28.

Hedda Schupak
Events & AwardsMar 14, 2024
WJA Foundation Establishes Scholarship in Hedda Schupak’s Honor

It aims to support aspiring journalists, media professionals, content creators, and communicators.

Slick Rick
Events & AwardsMar 13, 2024
A Celebration of Hip-Hop Jewelry Is Coming to AMNH

“Ice Cold: An Exhibition of Hip-Hop Jewelry” will open at the New York City museum on May 9.

Dave Meleski
MajorsMar 13, 2024
Richline’s Dave Meleski Takes Over as RJC Chair

He succeeds David Bouffard, who is leaving Signet and the RJC next month.

Zachary’s Jewelers Mother’s Day kids jewelry contest
IndependentsMar 13, 2024
Zachary’s Jewelers Is Holding a Mother’s Day Jewelry Contest for Kids

Three winners will have their jewelry sketches turned into a real piece of jewelry in time for the holiday.

Boucheron Power of Couture
CollectionsMar 13, 2024
Boucheron’s New High Jewelry Collection Pays Homage to Ceremony, History

“Power of Couture” recalls Frédéric Boucheron’s love of fabric using diamonds and rock crystal.

Harry Winston diamond necklace
AuctionsMar 12, 2024
Top Lots Don’t Sell at Sotheby’s Signed Jewels Auction

A Harry Winston diamond necklace and other top lots failed to find buyers.

National Jeweler columnist Lilian Raji
ColumnistsMar 12, 2024
The PR Adviser: Closing Sales and Following Up

Lilian Raji offers advice to a business owner who is having trouble crossing the finish line with customers.

Steve Webb
MajorsMar 12, 2024
Steve Webb Named EVP of The Gordon Company

He brings 30 years of retail store management experience to the role.

Diamonds Do Good Awards logo
Events & AwardsMar 12, 2024
DDG to Honor 3 Industry Veterans in Vegas

At its annual gala, Diamonds Do Good will present awards to GIA, London Jewelers, and Lisa Bridge.

Cynthia Erivo
EditorsMar 11, 2024
This Year’s Oscars Jewelry Was the Definition of Glamour

Vibrant gemstones, layered diamond pieces and brooches with a story stole the show.

2024 Gem Awards audience
Events & AwardsMar 11, 2024
Gem Awards Highlight the Power of Retail, Community

The 2024 winners expressed gratitude to their teams, industry colleagues, and those who turn jewelry dreams into reality.

Jewelry from designers Jean Prounis, Marla Aaron, and Marie Lichtenberg
CollectionsMar 08, 2024
Pieces of the Week: Gem Award for Jewelry Design Nominees

They are Marla Aaron, Marie Lichtenberg, and Jean Prounis.

Peter Montalbano
Events & AwardsMar 08, 2024
Peter Montalbano to Receive JSA Industry Service Award

The Jewelers’ Security Alliance will honor the industry veteran at its upcoming annual luncheon.

Pomellato International Women’s Day video campaign
Policies & IssuesMar 08, 2024
Pomellato’s 2024 IWD Video Calls for an End to Violence Against Women

The annual video stars Pomellato CEO Sabina Belli alongside Jane Fonda and other celebrities and activists.

970x250.jpg
Supplier BulletinMar 07, 2024
Empower Your Team with IGI’s Comprehensive Educational Services

Sponsored by IGI

Eddie Grove
IndependentsMar 07, 2024
‘Old-School’ Jewelry Salesman Eddie Grove Dies at 81

The Pennsylvania native, who sold for Gumuchian and others, is remembered for being kind and outgoing.

A selection of engagement rings
TrendsMar 07, 2024
5 Engagement Ring Trends for 2024

From three-stone rings to fancy shapes, experts weigh in on what consumers could be looking for this year.

×

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