Sunday, 18 November, 2018

Sears, the Amazon of its day, files for bankruptcy

Sears, once the largest retailer in the world, is closing hundreds of stores and reportedly planning to file for bankruptcy. Here's how it got there. Sears’ bankruptcy appears imminent
Kelvin Reese | 15 October, 2018, 18:28

The beleaguered 125-year-old retailer, once the largest in the United States, hopes to sell stores and other assets, including its Kenmore appliances brand and home services business, in court-supervised auctions while under bankruptcy protection, the sources said.

Sears' shares, which were over $100 each year after billionaire hedge fund manager Edward Lampert took over in 2004, closed at about 41 cents on Friday. "In our view, too much rot has set in at Sears to make it viable business".

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 NY.

Sears had a $134 million debt payment due Monday that it couldn't afford, prompting the bankruptcy filing. Lampert, who is Sears's biggest shareholder and will remain as chairman, acknowledged in the statement that turnaround efforts so far have fallen short. Mohsin Meghji, a managing director of the M-III Partners corporate advisory firm, was appointed chief restructuring officer.

Having so little cash available would make it very hard for Sears to pay back $134 million in debt due on Monday.

Keeping shelves full and sales stable could become a determining factor in avoiding liquidation and helping creditors determine whether they want to keep throwing money into the company.

The critical holiday season will be a particular challenge for Sears.

It's been a rough year for large brick-and-mortar stores, with Toys "R" Us failing to emerge from bankruptcy proceedings and closing all its stores. The original Kmart store in Garden City closed previous year.

Search begins for nine climbers killed on Nepal peak
Kim Chang-ho, who climbed the 14 highest mountains in the world in the fastest time in 2013, was one of the climbers who died. South Korea's foreign ministry said it is closely cooperating with the Nepalese government for the retrieval of the bodies.

Space crew survives plunge to Earth after Russian rocket fails
The Soyuz MS-10 spacecraft launched from the Baikonur Cosmodrome in Kazakhstan to the International Space Station at 4:40 a.m. EDT Thursday, October 11 (2:40 p.m.in Baikonur) carrying American astronaut Nick Hague and Russian cosmonaut Alexey Ovchinin.

Baker says she's honored to make United Kingdom royal wedding cake
Security is likely to be one of the bigger expenses of the day, with some newspapers estimating that the cost could be about £2m. Accompanying the news were several sweet throwback photos of the couple and their siblings to mark the special occasion.

"ESL believes that supervision by a judge will enable creditors to address any issue among them according to a clear set of rules and permit the sale of certain assets through a court-approved auction process to maximize value", the fund said in a statement.

Seritage Growth Properties, part of a real estate investment trust spun off by Sears in 2015 with the leases on 230 properties operated by Sears or its Kmart division, is also 44 percent-owned by Lampert entities.

The company says in its release that it intends to continue payment of employee wages and benefits, honor member programs, and pay vendors and suppliers in the ordinary course for all goods and services provided on or after the filing date. Sears now has a store at the Huntington Mall, as well as smaller "Hometown" stores in Ripley, Gallipolis, Pikeville and South Williamson.

In this undated file photo, Ruth Parrington, librarian in the art department of the Chicago Public Library, studies early Sears Roebuck catalogs in the library's collection in Chicago.

It's also worth noting that Sears and Montgomery Ward were both disruptors of marketplaces in their own times. Founded in 1892, it was a USA retail juggernaut until the 1990s, when it started facing stiff competition from Walmart, Target and other more agile competitors.

The company was started by Richard Sears, a train station agent in Minnesota who began selling watches by mail in 1886, according to the company's website.

But while retailers typically file for bankruptcy with the intention of staying in business, many end up going bust after filing.

Recommended

Elizabeth Warren Releases DNA Test Indicating Native American Ancestry Elizabeth Warren Releases DNA Test Indicating Native American Ancestry On Monday - in a move that makes her presidential ambitions unmistakable - Warren released a test that appears to do just that. Trump replied, "I didn't say that". "And Trump can say whatever he wants about me", she adds.

Labour says would stop selling arms to Saudi Arabia Labour says would stop selling arms to Saudi Arabia The Trump administration, however, is heavily invested in the long-standing, US relationship with Riyadh. Khashoggi had written columns critical of the Saudi government in The Post in the past year.

India Wins Seat to UN Human Rights Council India Wins Seat to UN Human Rights Council India received 188 votes, the highest polled by any of the 18 countries elected from the 193-member General Assembly . India had previously been elected to the council for the 2011-2014 and 2014-2017 terms.

Selena Gomez hospitalized, reportedly has 'emotional breakdown' Selena Gomez hospitalized, reportedly has 'emotional breakdown' But she soon returned to the hospital because she was on another emotional rampage after her low white blood cell count continued. She was hospitalized twice within the last few weeks, both times for "an alarmingly low white blood cell count", TMZ reports .

Donald Trump can meet Kim Jong-un after US mid-term polls Donald Trump can meet Kim Jong-un after US mid-term polls The Korea Herald is a member of The Straits Times media partner Asia News Network, an alliance of 23 news media organisations. As to ending the war, he recounts that there was "enough discussion" with President Trump and other United States officials.

‘Embarrassing’: Yanks routed by Red Sox 16-1, trail ALDS 2-1 ‘Embarrassing’: Yanks routed by Red Sox 16-1, trail ALDS 2-1 Zach Britton gave up an opposite-field homer to No. 9 batter Christian Vazquez in the fourth, and NY never fully recovered. Craig Kimbrel somehow, someway, got the save, almost squandering a three-run lead as part of a wild ninth inning.

Facebook hackers stole locations and other private data for millions of users Facebook hackers stole locations and other private data for millions of users Or you can click this link while signed into Facebook and scroll down. "Once you've become a target, it never ends", he said. While they procured access tokens for another one million Facebook users, the hackers did not steal any data in this case.

How rising interest rates are shaking up the economy How rising interest rates are shaking up the economy The Fed is expected to raise interest rates at least three times in 2019, up from the two hikes that it forecasted in December. "I think the Fed has gone insane ", the president said after walking off Air Force One in Erie, Pennsylvania for a rally.

Israeli forces kill six Palestinians during Gaza protests Israeli forces kill six Palestinians during Gaza protests The main border crossing to deliver fuel to Gaza had been closed by Israel for weeks on two separate occasions in July and August. They added that Hamas leader Ismail Haniya also attended the protests east of Gaza City and hailed the ongoing demonstrations.

Christian pastor Andrew Brunson released and allowed to leave Turkey Christian pastor Andrew Brunson released and allowed to leave Turkey Weeks later, he was ousted by US President Donald Trump which added uncertainty to the relationship between the two countries. US broadcaster NBC said on Thursday that Washington had done a secret deal with Ankara to secure Brunson's release.

China says in 'communication' amid report of Trump-Xi meet China says in 'communication' amid report of Trump-Xi meet President Trump added he could do a lot more if he wanted to, but said he would prefer Beijing come to the negotiating table. Overall, China's global exports rose 14.5 percent over a year earlier, up from August's 12.2 percent growth.

Brexit deal next week 'within reach': Barnier Brexit deal next week 'within reach': Barnier Britain's Brexit minister, Dominic Raab, could also come to Brussels then if weekend talks cover enough ground. In a Q&A session with Reuters, Tony Blair advised parliamentarians to vote the Brexit deal down.

Guests arrive for Princess Eugenie's royal wedding Guests arrive for Princess Eugenie's royal wedding The group says Eugenie does not carry out royal duties and that weddings are personal, private occasions, not affairs of state. Eugenie met the designers when she was co-hosting an event in support of women artists, according to Buckingham Palace .

China trade war and Brexit threaten global growth says International Monetary Fund China trade war and Brexit threaten global growth says International Monetary Fund At the same time, they note that the growth is becoming less balanced and in some leading economies, it may already have peaked. The benchmark stock index fell to the lowest in more than two years on Monday amid worries of the worsening economic crisis.

Bitter Battle Over Kavanaugh Adds Fuel to Midterm Showdown Bitter Battle Over Kavanaugh Adds Fuel to Midterm Showdown These results show significant damage to the Supreme Court's standing in the public's eye. All three were in high school then. "That's what this new Democratic Party is about".