Posted by News Express | 15 October 2018 | 1,271 times
Sears, the US retailer that that once dominated America's shopping malls, has filed for bankruptcy.
Sears Holdings - which also owns Kmart - filed for Chapter 11 bankruptcy protection on Monday.
The company has suffered, along with many other traditional retailers, from rising online competition from firms such as Amazon.
Sears has been closing stores and selling properties as it grapples with debts of more than $5bn.
The company employs nearly 90,000 people in the US, although that is down from 246,000 five years ago, and in its heyday it had more than 3,000 stores.
It became America's largest retailer before being overtaken by Walmart in the 1980s.
The firm filed for bankruptcy petition after it reportedly could not meet a $134m repayment due on Monday.
Chapter 11 protection postpones a US company's obligations to its creditors, giving it time to reorganise its debts or sell parts of the business.
Eddie Lampert - who is the company's chief executive, biggest investor and landlord - had attempted to restructure its debts to avoid bankruptcy.
In a statement, he said: "Over the last several years, we have worked hard to transform our business and unlock the value of our assets.
"While we have made progress, the plan has yet to deliver the results we have desired."
Announcing its bankruptcy filing, Sears also said it would close 142 unprofitable stores by the end of the year, on top of the previously announced closure of 46 stores by November. (BBC)
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