Sears Lives to See Another Day

Content Manager

A U.S. Bankruptcy Court judge approved the sale of Sears to former chairman and CEO Eddie Lampert late last week, according to Bloomberg, accepting his $5.2 billion bid for the assets and keeping the company alive.

The approval prevents Sears from liquidating the rest of its stores. Lampert had originally offered to keep 425 stores open and prevent the loss of 50,000 jobs.

The bankruptcy judge rejected arguments from a group of creditors that the sale process was unfair, according to Bloomberg. Creditors argued that Lampert, who orchestrated the 2005 merger of Sears Roebuck and Kmart, failed to invest in its stores and stole the company’s assets.

The judge said these claims shouldn’t stand in the way of the sale and likely be decided in future lawsuits.

CNN reported that the “new” Sears will only have a fraction of its debt. The 425 stores that are part of the sale were profitable right up to the filing. Most of the stores that remain are in California, the Northeast, the Mid-Atlantic region, Florida and Texas, all more affluent areas.

Sears said in bankruptcy court it expects to raise at least $650 million from real estate sales in the next three years, and put more of an emphasis on its “Shop Your Way” loyalty program. It also plans a smaller store format, about 12,500 square feet rather than the 160,000 square-foot locations found in  malls, according to CNN.

Partner Content

Hincapie Sportswear Finds Omnichannel Success in the Cloud - Netsuite
For more and more companies, a cloud-based unified data solution is the way to make this happen. Custom cycling apparel maker Hincapie Sportswear has leveraged this capability to gain greater visibility into revenue streams, turning opportunities into sales more quickly while gaining overall operating efficiency. Download this ecommerce special report from Multichannel Merchant to more.
The Gift of Wow: Preparing your store for the holiday season - Netsuite
Being prepared for the holiday rush used to mean stocking shelves and making sure your associates were ready for the long hours. But the digital revolution has changed everything, most importantly, customer expectations. Retailers with a physical store presence should be asking themselves—what am I doing to wow the customer?
3 Critical Components to Achieving the Perfect Order - NetSuite
Explore the 3 critical components to delivering the perfect order.
Streamlining Unified Commerce Complexity - NetSuite
Explore how consolidating multiple systems through a cloud-based commerce platform provides a seamless experience for both you, and your customer.