Sears files for bankruptcy
NEW YORK — Sears has filed for Chapter 11 bankruptcy protection, buckling under its massive debt load and staggering losses.
The company once dominated the American landscape, but whether a smaller Sears can be viable remains in question.
It joins a growing list of retailers that have filed for bankruptcy or liquidated in the last two years amid a fiercely competitive climate. But with its sheer colossal size, Sears’ reorganization in court will have even wider ripple effects.
The operator of Kmart and Sears stores has already closed hundreds of locations and has put other famous brands on the block as it burns through money and sees more customers abandon its often-neglected stores.
Sears filed in U.S. Bankruptcy Court in White Plains, N.Y.
The Wall Street Journal says it “reached a deal with its lenders that will allow the 125-year-old company to keep hundreds of its stores open for now.
“As part of the deal, Sears is expected to close at least 150 stores immediately, according to people familiar with the matter. Currently, the company operates roughly 700 Sears and Kmart stores. It employs about 70,000 people.”
The Journal says the filing came just before Sears would have had to repay $134 million in loans later on Monday.
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