Sears Files for Bankruptcy
Sears Holdings, the parent company of Sears and Kmart, has filed for Bankruptcy. Not really surprising considering Sears has been struggling for years. Over the past years, Sears has been closing stores and more closures are expected. Sears was unable to make a $134 million debt payment pushing its already precarious financial position over the edge.
Sears plans to keep its remaining stores open. There are 4 Sears department stores in the Las Vegas area. In addition, Sears has several appliance service centers, automobile center and outlet locations in Las Vegas.
The Bankruptcy will enable Sears to shed debt and to give it some breathing room to be competitive in this new e-commerce world. The overarching policy in Las Vegas bankruptcy is to keep the company operational so that it may create and maintain jobs, positively influence commerce and pay taxes. So in a close call when a creditor prefers liquidation of the company assets versus allowing Sears to restructure such debt, Sears will generally get the benefit of the doubt with the hopes of being successful and accomplishing the bankruptcy policy goals.
For my generation, Sears has been the mainstay for big ticket shopping. Home appliances, tools and of course, the famous Christmas catalog. I have many memories of looking through the telephone book size catalog for the weeks leading up to the winter holiday. Also, mandatory when shopping at Sears was getting popcorn at the snack shop. Sears is a part of American history.
I hope Sears is able to use the Bankruptcy to restructure, capitalize upon its strengths, and keep its stores open.