SEVERE WX : Air Quality Alert View Alerts

Crunch time for Sears: More store closings and a last-minute bid to save company

Sears continues its struggle to survive. The iconic but now bankrupt retailer announ...

Posted: Dec 29, 2018 10:37 PM
Updated: Dec 29, 2018 10:37 PM

Sears continues its struggle to survive.

The iconic but now bankrupt retailer announced Friday it was closing 80 more Sears and Kmart stores. It also received a last-minute bid from its chairman to keep much of the rest of the business alive. The company's future remains very much in doubt.

Bankruptcy

Business financial trouble

Business, economy and trade

Companies

Company activities and management

Financial performance and reports

Insolvency and bankruptcy courts

Law and legal system

Law courts and tribunals

Sears Holdings

Business and industry sectors

Business figures

Department stores

Eddie Lampert

Retail and wholesale trade

Business closings

Company locations and facilities

Company strategy

Eddie Lampert, the Sears chairman and its largest creditor, met a deadline imposed by the company for potential buyers of hundreds of stores and other Sears assets.

Lampert, who is Sears' largest creditor, said his plan would keep 425 stores open, rather than the 500 stores he proposed earlier. He also cut the price he's willing to pay by $200 million to $4.4 billion.

He says he still plans on offering jobs to as many as 50,000 employees. And he said he had received $1.3 billion in loan commitments from three leading financial institutions, which he did not identify.

Sears declined to comment. It is on record that it wants to keep the company open, although it has not ruled out moving to close the business. The final decision on Lampert's bid will be made by the judge overseeing Sears.

A committee of Sears' other leading creditors has argued that the company should shut down the business, closing all the stores and liquidating its inventory and other assets. They argue it is the best way to stem losses and return the greatest amount of cash to the people and businesses owed money by Sears. Lampert argues that keeping the chain in business is the best course for everyone, including creditors and employees.

"Our bid reflects our firm belief that there is a future for Sears as a smaller, less indebted retailer," he said. "We continue to believe that Sears' integrated and complementary businesses and brands can form the framework of a successful platform after emerging from bankruptcy." Reuters and CNBC reported Lampert's bid earlier Friday evening.

Sears filed for bankruptcy protection on October 15.

In a court filing, the creditors' attorney called Sears' plan to become profitable "nothing more than wishful thinking " and "an unjustified and foolhardy gamble with other people's money."

US Bankruptcy Court Judge Robert Drain, who is hearing the case, has so far allowed Sears to proceed with plans to stay in business. But he will be hearing from creditors again at hearings set for next month. Any plan would have to be approved by the court.

Earlier on Friday, Sears announced it was closing 80 more stores. The closings comprise 43 Sears and 37 Kmart stores, the two brands operated by Sears Holdings. Most of the 80 stores will shut down by late March. Going out of business sales will start within two weeks.

The company had nearly 700 stores at the time of its bankruptcy filing.

Lampert bought Sears and merged it with Kmart in 2005 to form Sears Holdings. He was its CEO until its bankruptcy filing as well as its primary shareholder as it lost billions of dollars and closed thousands of stores.

For much of the 20th century it was not only the nation's largest retailer, it was the largest private-sector employer. With its network of hundreds of stores anchoring malls across America, as well as its catalog selling people virtually any item they could need, it was both the Walmart and Amazon of its day.

Minnesota Coronavirus Cases

Data is updated nightly.

Cases: 612701

Reported Deaths: 7761
CountyCasesDeaths
Hennepin1270801803
Ramsey53350911
Dakota47466477
Anoka43482465
Washington27810296
Stearns22764227
St. Louis18353320
Scott17763139
Wright16615153
Olmsted13587104
Sherburne1218596
Carver1080349
Clay830792
Rice8300112
Blue Earth772844
Crow Wing691799
Kandiyohi673185
Chisago629955
Otter Tail592687
Benton588298
Goodhue487674
Douglas480881
Mower478834
Winona466452
Itasca463968
Isanti447567
McLeod436661
Morrison429562
Beltrami411863
Nobles411750
Steele401819
Polk391372
Becker390057
Lyon366454
Carlton357158
Freeborn353634
Pine338123
Nicollet335145
Mille Lacs316856
Brown309340
Le Sueur301228
Todd289633
Cass289133
Meeker267644
Waseca241823
Martin237633
Roseau212921
Wabasha20883
Hubbard198941
Dodge19173
Renville184246
Redwood178941
Houston176516
Cottonwood168224
Wadena165323
Fillmore160510
Faribault157820
Chippewa154438
Pennington154120
Kanabec148128
Sibley147710
Aitkin140237
Watonwan13629
Rock129919
Jackson123212
Pipestone117326
Yellow Medicine115620
Pope11416
Murray107710
Swift107718
Koochiching96919
Stevens92711
Clearwater89517
Marshall89017
Lake85121
Wilkin84613
Lac qui Parle76222
Big Stone6134
Grant5958
Lincoln5873
Mahnomen5669
Norman5519
Kittson49222
Unassigned49093
Red Lake4037
Traverse3835
Lake of the Woods3504
Cook1740

Iowa Coronavirus Cases

Data is updated nightly.

Cases: 376815

Reported Deaths: 6122
CountyCasesDeaths
Polk59215646
Linn21567342
Scott20530250
Black Hawk16850320
Woodbury15378230
Johnson1479586
Dubuque13627215
Dallas1150699
Pottawattamie11393177
Story1092548
Warren594392
Clinton565894
Cerro Gordo564898
Webster546397
Sioux520574
Muscatine4956106
Marshall493679
Des Moines481776
Jasper454273
Wapello4402124
Buena Vista432340
Plymouth405782
Lee396958
Marion372378
Henry301737
Jones301357
Bremer294663
Carroll287252
Boone273735
Crawford273541
Benton264255
Washington261051
Dickinson251145
Mahaska235151
Jackson225943
Kossuth222166
Clay217927
Tama213872
Delaware213343
Winneshiek201337
Buchanan197834
Page195722
Cedar194323
Hardin192544
Wright191240
Hamilton189251
Fayette188943
Harrison182873
Clayton173258
Butler169135
Madison168019
Floyd165242
Mills164724
Cherokee162238
Lyon161241
Poweshiek159836
Allamakee156452
Hancock154034
Iowa149124
Winnebago147031
Calhoun144813
Cass142155
Grundy139733
Emmet137341
Jefferson135535
Sac133320
Shelby132238
Louisa130749
Union129535
Franklin129223
Appanoose128749
Mitchell127343
Chickasaw126017
Humboldt126026
Guthrie125332
Palo Alto115224
Montgomery106938
Howard105522
Clarke102624
Monroe101533
Keokuk100432
Ida93735
Adair90132
Davis88525
Pocahontas87022
Monona86731
Greene80011
Osceola79517
Lucas78323
Worth7648
Taylor67112
Decatur6649
Fremont64910
Van Buren57318
Ringgold57124
Wayne56623
Audubon53613
Adams3504
Unassigned80
Rochester
Partly Cloudy
57° wxIcon
Hi: 77° Lo: 53°
Feels Like: 57°
Mason City
Partly Cloudy
54° wxIcon
Hi: 79° Lo: 55°
Feels Like: 54°
Albert Lea
Partly Cloudy
55° wxIcon
Hi: 77° Lo: 52°
Feels Like: 55°
Austin
Cloudy
55° wxIcon
Hi: 77° Lo: 51°
Feels Like: 55°
Charles City
Clear
57° wxIcon
Hi: 77° Lo: 52°
Feels Like: 57°
Gradually warming back into the 80s
KIMT Radar
KIMT Eye in the sky

Latest Video

Image

RPU to resume disconnections for customers with outstanding balances

Image

COVID-19 recession was the shortest in history

Image

Sean's Weather 8/2

Image

Demolition Derby at the Olmsted County Fair

Image

KAATS Gymnastics owner weighs in on coaching high level competition

Image

Preventing fights at the fair

Image

Ryan's Evening Forecast (8/1/21)

Image

Autocross at the Olmsted County Fair

Image

American Legion ride for PTSD

Image

Cresco celebrates 100 years of wrestling

Community Events