Sears faces critical deadline, will it survive?
- Author: David Armstrong Dec 30, 2018,
Dec 30, 2018, 0:40
It then said it would shutter 142 unprofitable stores in the hopes that it could stay in business.
"Liquidation sales at these stores are expected to begin in two weeks".
A committee of other creditors, including vendors and landlords, has proposed that Sears instead move forward with plans to shut down the business, closing all the stores and liquidating its inventory and other assets.
Sears is not indicating how many employees are affected by the closure.
"But it has been looming for a long time given the struggling retailer's difficulties and previous decisions over recent years to close multiple stores across the country", city spokesman Mark van de Kamp said Friday.
The Kmart in Rochester and the Sears in the Mall of America are being closed. The company says it has announced the latest round of closings as part of a financial restructuring.
Last week, a bankruptcy court allowed Sears Holdings to sell its home improvement service businesses to Service.com for $60 million.
The deadline to buy Sears Holdings out of Chapter 11 Bankruptcy is at 3 p.m. Friday.
Earlier on Friday, Sears announced it was closing 80 more stores.
The 80 stores are due to close by March. But he also needed cash, and some lenders have balked because Sears has been losing money for years, and suppliers are concerned they might not get paid for goods that they ship to restock stores.