Following reports earlier this month that Sears is in the process of selling off billions of dollars’ worth of assets to deal with ongoing financial problems (Sears Sells Off Assets to Deal with Multi-Billion-Dollar Debts), the company has filed for chapter 11 bankruptcy. The department store chain has apparently reached an agreement with lenders that will allow it to keep hundreds of its stores open for the time being.
Several past employees told news outlets that the writing has been on the wall for Sears for some time, remarking that the company failed to see other big players like Walmart and online retailers like Amazon as credible threats until it was too late.
On October 4th, Sears reopened a store in Illinois after a year of closure for renovations.
Company CEO Eddie Lampert recently blamed the company’s financial struggles on its financial obligations to retired staff, which have seen $4.5 billion paid out in pension funds since 2005.
In an official announcement, the company said, “We remain open for business. Our Sears and Kmart stores and online and mobile platforms are continuing to serve our members and customers. Our services and brand businesses will also operate as usual”.
