The Sears chain declares bankruptcy

Sears also announced that it would close 142 stores by the end of the year; liquidation sales would begin as soon as possible

The chain of department stores Sears Holding, which was once the largest retail emporium in the world, was welcomed this morning in a court in New York to Chapter 11 of bankruptcy laws.

The announcement marks the end of an era for retail in the United States, in which Sears was first overtaken by chains such as Walmart and Home Depot, and later displaced by internet firm Amazon as the preferred option to buy clothes, tools, and appliances.

The company said in a statement that it reached an agreement with its creditors that will allow Sears and Kmart stores to remain open and take advantage of the start of the holiday season.

He also stressed that his majority shareholder, Edward Lampert, the administrator of an investment fund that had been at the helm of the company since 2005, would no longer serve as an executive director although he would remain as chairman of the board of directors.

Sears also announced that it would close down 142 stores by the end of the year, and that liquidation sales of such assets would begin in the short term. These actions are in addition to the 46 stores that are expected to stop operating next month.
Currently, the company manages approximately 700 Sears and Kmart stores and employs about 70,000 people in the United States.

The US chain of stores Sears filed for bankruptcy

The bankruptcy filing came before Sears had to pay $ 134 million as part of its debt maturities.
In recent years, the firm closed hundreds of stores in the midst of a commercial reorganization caused in part by the rise of Amazon and other e-commerce players.

The company had a large debt and on Monday could not repay 134 million dollars it owed, Sears said in a statement.

Edward S. Lampert, president of Sears Holdings, said the insolvency statement would allow the company to have the "flexibility to strengthen its balance sheet" and accelerate a strategic transformation.

The company said it intends to reorganize around a smaller retail platform, something that will help save tens of thousands of jobs.

The firm had 89,000 employees as of February, according to its statement before the commission that controls the actions of the companies (SEC) - it counted with 350,000 a decade ago - as well as with 547 Sears stores and 432 Kmart (both had merged in 2004).

According to the statement, Sears will close at the end of the year 142 unprofitable stores, in addition to the closure in November of the 46 points of sale previously announced. Lampert will continue to preside over the firm but will resign as executive director, a position that will be assumed by other senior executives as part of a new "Office of the Executive Director." 

Sears said he had received a commitment to finance 300 million, since the firm is a debtor in possession of assets, and was negotiating another 300 million. Sears expressed its intention to move forward with the restructuring process as quickly as possible and promised to continue with its reorganization plan in the short term.

Sears closed hundreds of stores in the midst of a commercial reorganization caused in part by the rise of Amazon and other e-commerce players. The bankruptcy process will give the company the flexibility to strengthen its accounts, which will allow "the company to accelerate its strategic transformation, continue adjusting the size of its operating model and return to profitability," said Lampert.

The American chain Sears, which came to dominate the retail sector before the advent of online sales, filed for bankruptcy, the company announced Monday.

"Our goal is to achieve a comprehensive restructuring in the most efficient way possible, working in close collaboration with our creditors and other title holders, to be better placed to execute our strategy and key priorities," said Lampert.

Sears is not the only one of the big chains that fall before the advance of online commerce.

In March, the iconic Toys "R" Us toy store announced the closure of its stores in the United States while other large firms, such as Macy's and JC Penny, have been forced to close many outlets and fire officials.