Working With A Bankruptcy Attorney
Bankruptcy law can be hard to understand. As you can see, there are a number of restrictions when it comes to filing multiple and subsequent bankruptcies. Because of this, its highly advised that you work with a bankruptcy attorney that can walk you through the process and clarify any questions or concerns you might have. A bankruptcy attorney might also be able to prescribe options that keep you out of having to declare bankruptcy in the first place. There can be a lot of questions during this extremely stressful time. Let the lawyers at Resnik Hayes Moradi LLP walk you through the process so you can achieve the best outcome possible.
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Toy Distributors Are Nervous
All of this is making toy makers nervous about how much to ship to Sears for the upcoming holiday season. It is estimated that Sears may account for up to 2% of retail toy market in the United States. So, while toy makers want to ship their product to Sears for sales to toy consumers, these toy companies are also worried about getting paid themselves. According to the article, the toy industry has had two strong years and 2016 has been good so far. So, naturally, the toy manufacturers want a strong finish to 2016 as well.
And, as if Sears didnt have enough on its plate, the company is experiencing an accelerating rate of the selling off of its shares by investors. This problem is most recently aggravated by the companys negative second quarter results. Shares are down by 20%. Investors are clearly not feeling too good about Sears viability.
So, all of this certainly may lead to a bankruptcy filing by Sears next year. Perhaps if the company can achieve strong sales over the upcoming holiday season and begin reversing its declining sales problem, Sears will at least be able to avoid a bankruptcy liquidation. Then perhaps a bankruptcy reorganization would be in order and Sears can stay with us for a while to come. But, for now, well have to see what the future brings. Lets hope its a good one.
Bankruptcy And Current Operations
On September 24, 2018, the retailer’s CEO warned that the company was “running out of time” to salvage its business. Sears Holdings filed for Chapter 11 bankruptcy on October 15, 2018, ahead of a $134 million debt payment due that day. On November 23, 2018, Sears Holdings released a list of 505 stores, including 266 Sears stores, that were for sale in the bankruptcy process, while all others would hold liquidation sales.
On January 16, 2019, Sears Holdings announced it would remain open after Lampert won a bankruptcy auction for the company with an offer to keep about 400 stores open. On February 7, 2019, a bankruptcy judge approved a $5.2 billion plan by Sears’s chairman and biggest shareholder to keep the business going. The approval meant roughly 425 stores, including 223 Sears stores, and 45,000 jobs would be preserved.
In April 2019, Sears announced the opening of three new stores with a limited set of merchandise under the name Sears Home & Life. Also that month, Sears closed its store at Windward Mall in Kaneohe, Hawaii, and its store at Oakbrook Center in Oak Brook, Illinois, making it the first post-bankruptcy closure for the brand since being bought by ESL.
Near the end of 2019, Sears sold the brand name DieHard to Advance Auto Parts for $200 million.
The last remaining Sears store on Long Island at Sunrise Mall was closed by October 3, 2021.
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Sears Saving Grace Is Going Bust
Critics of Sears owner Eddie Lampert argue he has been more interested in the companys real estate than its retail operations. Lampert, a hedge fund operator with an expertise in real estate, he has redeveloped many former Sears locations.
But theres about to be a flood of other companies store closings that will hurt the value of the real estate that has been Sears saving grace.
Office Depot has announced plans to close an undetermined number of its 1,300 stores. Stage Stores, which owns nearly 800 smaller department stores under a variety of brands, has also filed for bankruptcy and plans to close all those stores permanently. Pier 1, which was already in bankruptcy ahead of the crisis, announced plans this week to permanently close all of its 450 US and Canadian stores.
How much is that real estate worth now, given all the empty locations? said Basu. Its become a very crowded commercial real estate market.
Sears Filed For Bankruptcy And Plans To Shut Down 142 More Stores
The countrys first everything store has lost 96% of its market value since it went public in 2003.
Sears Holdings, which owns Kmart as well as its namesake stores, filed for bankruptcy on Monday, announcing plans to close 142 more stores after several years of dwindling sales and mounting debt.
As part of the Chapter 11 bankruptcy restructuring, Sears CEO Eddie Lampert will step down from his position, effective immediately. Mohsin Meghji, managing partner of M-III Partners, will step in as the companys chief restructuring officer.
Over the last several years, we have worked hard to transform our business and unlock the value of our assets, Lampert, who served as CEO for five years, said in a statement. While we have made progress, the plan has yet to deliver the results we have desired, and addressing the companys immediate liquidity needs has impacted our efforts to become a profitable and more competitive retailer.
Sears bankruptcy filing comes more than a decade after the company acquired Kmart in 2004 for $11 billion, merging two retailers that had struggled to keep up with changing consumer habits as Walmart and Target swept up market share.
But following the launch of big-box retailers like Walmart and online juggernauts like Amazon, Sears lost its price and convenience advantage.
In July, Sears closed its last remaining store in Chicago, its hometown. In August, the company announced another 46 store closings.
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Sears Preparing To File For Bankruptcy Sources Say Shares Fall 31 Per Cent
This article was published more than 3 years ago. Some information may no longer be current.
Sears Holdings Corp is preparing to file for Chapter 11 bankruptcy protection in the coming days following years of declining sales, sources said on Wednesday, casting doubt over the survival of what was once the worlds largest retailer.
The bankruptcy filing would end a standoff between Chief Executive Officer Eddie Lampert, the retailers biggest shareholder and lender, and a special board committee the company has formed to consider a rescue plan proposed by Lampert that would involve asset sales and a debt restructuring.
The committee has been resisting the plan amid concerns that creditors and shareholders would sue over it being too favorable for Lampert. His history of financial engineering at Sears for more than a decade through deals tied to his hedge fund ESL Investments Inc could now be subjected to new scrutiny by Sears creditors in bankruptcy court, according to the sources.
Both Lampert and the Sears special committee now accept that only a court-supervised process can determine the companys future, one of the sources said. Talks are under way to arrange debtor-in-possession financing for a bankruptcy filing that could come in the next few days, the sources added. CNBC first reported on the debtor-in-possession financing talks, while the Wall Street Journal first reported on Sears bankruptcy preparations.
IN THE SHADOW OF TOYS R US
Is Sears Filing For Bankruptcy
After months of speculation, the owner of Sears and Kmart stores is seeking to dissolve rumors of Chapter 11 bankruptcy filings. It is very important to reiterate that Sears Holdings remains focused on executing our transformation plan, wrote Chief Financial Officer Jason Hollar.
It might seem obvious why there are growing concerns about bankruptcy. Sears Holdings sales have dropping for years, with no signs of relief. Sales at Sears were down 9.3%, a much bigger drop than at almost all other major retailers. Since 2012, Sears has experienced a total of $10.5 billion in losses. It has also closed roughly one-third of its stores.
At one point, Sears was once the largest retailer in the United States. It now has a market value of $887 million.
Coronavirus Could Keep Shoppers Away For A Long Time
Then theres the X-factor: how willing people are to return to malls when stores reopen.
What Covid has done is accelerated the shift to online purchases pretty rapidly, said Marie Driscoll, a managing director at Coresight Research, an advisory and research firm specializing in retail. We already know mall traffic was down. We dont have a vaccine and people are afraid of going out.
That could be a particular problem for Sears and JCPenney, given that older shoppers are more likely to stay home during the pandemic. The average age of Sears shopper is 50, according to Coresights data, and JCPenney shoppers average age is 48. Both are among the oldest of any retailer.
Sears Declares Bankruptcy But For Its Proud Workers The Decline Was Years In The Making
Back in the day, their slogan said it all: “Sears, where America shops.”
But on the day that Sears Holdings declared bankruptcy, Jon White, who worked at the retail giant’s stores in and around Atlanta for nearly four decades, made a sad confession on Monday: “There was a saying that ‘if Sears didn’t have it, we didn’t need it.’ But we don’t shop at Sears anymore, except if it’s a major purchase like an appliance.”
White, who is 70 and worked at Sears for 38 and a half of those years, said it pained him to admit that.
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Sears’ Rise: The First 90 Years
In the mid-1880s, Richard Sears worked as a station agent for the Minneapolis and St. Louis Railway in North Redwood, Minnesota. He would sell lumber and coal on the side, giving him experience that came in handy when, in 1886, a local jeweler rejected a shipment of gold-filled watches from Chicago. Sears bought them himself, sold them at a profit, and ordered more. He founded the R.W. Sears Watch Company in Minneapolis, then moved to Chicago in 1887 and partnered with Alvah C. Roebuck, a watchmaker from Indiana. Both were in their twenties.
They launched a catalog of watches and jewelry the following year and incorporated Sears, Roebuck, and Co. in 1893. Two years later, a Chicago clothing manufacturer, Julius Rosenwald, bought into the company. By that time, the mail-order operation branched out from watches. Sales reached $750,000, and Sears’ iconic catalog ballooned to 532 pages. Farmers, fed up with understocked and overpriced general stores, flocked to Sears.
The company sold stock in 1906 in the first initial public offering for an American retail firmthe first to be handled by Goldman Sachs. It opened a 40-acre logistics center in Chicago that very same year. Henry Ford eventually made a pilgrimage to this “‘seventh wonder’ of the business world” to learn about the company’s storied efficiency.
Sears Holdings was delisted from the Nasdaq in Oct. 2018 and began trading over-the-counter.
Iconic Us Retailer Sears Files For Bankruptcy
Iconic U.S. retailer Sears, which at one time was the world’s largest chain of stores, filed for bankruptcy Monday as it struggles to stay in business.
The company is worth about $7 billion, but lists more than $11 billion in liabilities. It filed for Chapter 11 bankruptcy protection Monday, the day a massive payment to its creditors was due.
As part of its plan to stay afloat, Sears will close 142 of its remaining stores, leaving about 500 locations still open down from a one-time high of 4,000 stores.
“It’s a shame,” President Donald Trump said Monday. “Somebody that is of my generation, Sears Roebuck was a big deal. So, it’s very sad to see.”
“Where America shops” was one of the slogans Sears used throughout its 132-year history. But in recent years, Americans found other places and more modern ways to shop, and Sears, which focused on traditional brick-and-mortar department stores, could not keep up.
Sears began in 1886 selling watches and soon expanded to become the nation’s top retailer.
Anything that a household could use could be found at Sears, including the house. Sears sold tens of thousands of build-it-yourself house kits, which would be shipped to customers by rail from the Chicago headquarters. Hundreds of these homes still stand across the U.S.
The arrival of the annual Sears mail order catalog was a major event in American homes, especially in rural areas with no access to big stores.
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Sears Files For Chapter 11 Bankruptcy Protection Amid Plunging Sales Massive Debt
NEW YORK Sears has filed for Chapter 11 bankruptcy protection, buckling under its massive debt load and staggering losses.
Sears once dominated the American retail landscape. But the big question is whether the shrunken version of itself can be viable or will it be forced to go out of business, closing the final chapter for an iconic name that originated more than a century ago.
The company, which started out as a mail order catalog in the 1880s, has been on a slow march toward extinction as it lagged far behind its peers and has incurred massive losses over the years. 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.
Some like Payless ShoeSource have had success emerging from reorganization in bankruptcy court but plenty of others haven’t, like Toys R Us and Bon-Ton Stores Inc. Both retailers were forced to shutter their operations this year soon after a Chapter 11 filing.
“This is a company that in the 1950s stood like a colossus over the American retail landscape,” said Craig Johnson, president of Customer Growth Partners, a retail consultancy. “Hopefully, a smaller new Sears will be healthier.”
Given its sheer size, Sears’ bankruptcy filing will have wide ripple effects on everything from already ailing landlords to its tens of thousands of workers.
Administrative Expense Claims Consent Program
On October 15, 2019, the Bankruptcy Court entered an order confirming the Modified Second Amended Joint Chapter 11 Plan of Sears Holdings Corporation and Its Affiliated Debtors . The Confirmation Order approved, among other things, the Administrative Expense Claims Consent Program, the Opt-In/Opt-Out Procedures, and the form of Opt-In Ballot and Opt-Out Ballot.
The deadline to opt in to or opt out of the Administrative Expense Claims Consent Program is .
For more information, please click below to view the documents related to the Administrative Expense Claims Consent Program:
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A Tale Of Retail Hubris
It started by selling a single product category. But when it became clear that a sleepy, overpriced retail sector would crumble before it, there was nothing to stop the company from selling anything and everything. You could order from the comfort of your own home. You could pay a fair price. It would ship the goods right to you. Sales exploded, and if you’d picked up a big enough chunk of stock when the company went public, you’d never have to work again.
That description once applied to Sears, Roebuck, and Co., but now it better describes the company that’s blamed foror credited withits looming demise, Amazon. Having played the role of an upstart retail juggernaut in the 1890s, Sears now finds itself in the same position as the rural general stores it used to drive out of business en masse.
On the other hand, Sears’ demise is not all Amazon’s fault, nor is it a simple circle-of-life parable. Sears made its share of mistakes.
In its 2016 annual report, the company listed Walmart , Target , Kohl’s , J.C. Penney , Macy’s , Home Depot , Lowe’s , Best Buy , and Amazon as its main competitors. As of Oct. 2018, Sears lost 96% of its value since it began trading under its current ticker in May 2003. J.C. Penney has done even worse, but Lowe’s, Best Buy, and Home Depot have all seen their share prices at least double.
Amazon shares, on the other hand, are up nearly 33-fold. Even for a brick-and-mortar retailer in the digital era, Sears is struggling.
Sears Once Dominant Retailer Files For Bankruptcy
NEW YORK — Sears has filed for Chapter 11 bankruptcy protection, buckling under its massive debt load and staggering losses. Sears once dominated the American retail landscape. But the big question is whether its shrunken version can be viable or will be forced to go out of business, ending the final chapter for an iconic name that originated more than a century ago.
Sears filed in U.S. Bankruptcy Court in White Plains, N.Y.
Sears says it will “close 142 unprofitable stores near the end of the year. Liquidation sales at these stores are expected to begin shortly. This is in addition to the previously announced closure of 46 unprofitable stores that is expected to be completed by November 2018.”
Chairman and CEO Edward Lampert is giving up his CEO role but will remain as chairman. Three executives will take over the CEO functions for now.
The filing came just before Sears would have had to repay $134 million in loans later on Monday.
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Iconic Us Retailer Sears Files For Chapter 11 Bankruptcy
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The Chapter 11 filing to reorganize debts of the parent of Sears, Roebuck and Co and Kmart Corp follows a decade of revenue declines, hundreds of store closures, and years of deals by billionaire Chief Executive Officer Eddie Lampert in an attempt to turn around the company he bought in 2004.
Lampert had pledged to restore Sears to its glory days, when it owned the tallest building in the world and companies that included a radio station and Allstate insurance.
But the company has not turned a profit since 2011, and critics say Lampert let the stores deteriorate over the years, even as he bought the company’s stock and lent it money. It has sold off the legendary Craftsman brand and is considering an offer from Lampert for the Kenmore appliance name. For a graphic, click tmsnrt.rs/2A3giRQ
The company listed $6.9 billion in assets and $11.3 billion in liabilities in documents filed in the U.S. Bankruptcy Court in the Southern District of New York.
The bankruptcy filing was sparked by a standoff between Lampert, the companys biggest shareholder and lender, and a special board committee, over a rescue plan proposed by Lampert.
The largest U.S. toy retailer, Toys R Us, tried to emerge from its 2017 bankruptcy filing but was forced to liquidate six months later after creditors lost confidence in its turnaround plan.