header image

[Sign Up Now] to Receive Our FREE Daily SCVTV-SCVNews Digest by E-Mail

Inside
Weather
Santa Clarita CA
Partly sunny
Partly sunny
63°F
 
Calendar
Today in
S.C.V. History
April 22
1974 - Gov. Ronald Reagan speaks at dedication of COC's first permanent building, the William G. Bonelli Instructional Resource Center [story]
Ronald Reagan


| Tuesday, Oct 16, 2018
Sears
Sears Valencia went out of business in early 2018.

 

By Lorraine Bailey
(CN) – Sears, once a powerhouse of American retail, filed for Chapter 11 bankruptcy Monday and said it will close 142 stores amid mounting debt.

Sears Holding Corp., which owns Sears and K-Mart stores, finally succumbed to its massive debt burden when it was unable to make a $134 million debt payment due Monday.

The high-profile announcement, following similar declarations of bankruptcy by Toys “R” Us and Radioshack, marks another chapter in the struggle of brick-and-mortar retailers to adapt to the rise of online shopping.

Sears’ bankruptcy papers, filed in the Southern District of New York, indicate that the 132-year-old company has $11.3 billion in total debt and $6.9 billion in assets.

Founded in 1886, Sears began as a mail-order catalog business that transformed the way Americans shopped by offering rural customers a large selection of products at clearly labeled prices. Before Sears, these customers were often confined to higher-priced, narrow selections at a local general store.

As the U.S. population became more urban, Sears began opening large department stores and became an anchor for shopping malls around the county. It was the largest retailer in the world by revenue until surpassed by Wal-Mart in 1989.

Chicago’s skyline proudly features the 110-story skyscraper still commonly referred to as the Sears Tower, a monument now to the company’s former dominance. Originally built in 1973, the tower served as the company’s headquarters until 1995, and was the largest skyscraper in the world at the time. It has since been renamed the Willis Tower.

In a statement, Sears says it plans to close 142 unprofitable stores near the end of the year, in addition to the previously announced closure of 46 stores to be closed by November. There are currently about 700 Sears and K-Mart stores open nationwide, down from 1,700 at the end of 2014.

Eddie Lampert, the company’s largest shareholder, stepped down as CEO as part of Monday’s bankruptcy announcement, but will stay on as chairman of the board. The restructuring process will be managed by three of Sears’ top executives.

“The Chapter 11 process will give Holdings the flexibility to strengthen its balance sheet, enabling the company to accelerate its strategic transformation, continue right sizing its operating model, and return to profitability,” Lampert said in a statement. “Our goal is to achieve a comprehensive restructuring as efficiently as possible, working closely with our creditors and other debtholders, and be better positioned to execute on our strategy and key priorities.”

The company says it intends to remain in business rather than shut down completely and will “reorganize around a smaller store platform of EBITDA-positive stores.” EBITDA stands for earnings before interest, taxes, depreciation and amortization, and is used to determine how much cash flow comes from current operations.

Sears is currently negotiating a $300 million loan with ESL Investments, Lampert’s company, which has also expressed interest in buying a portion of Sears’ stores.

The company’s share price fell 21 percent Monday on the news to trade at 0.32 cents per share. Five years ago, Sears traded at $42.54 per share.

Comment On This Story
COMMENT POLICY: We welcome comments from individuals and businesses. All comments are moderated. Comments are subject to rejection if they are vulgar, combative, or in poor taste.
REAL NAMES ONLY: All posters must use their real individual or business name. This applies equally to Twitter account holders who use a nickname.

0 Comments

You can be the first one to leave a comment.

Leave a Comment


SCV NewsBreak
LOCAL NEWS HEADLINES
Thursday, Apr 22, 2021
City Announces Return of Concerts in the Park
The city of Santa Clarita’s Concerts in the Park series, presented by Logix Federal Credit Union, is scheduled to return this summer after a year off in 2020.
Thursday, Apr 22, 2021
Proposed Rate Changes Coming to SCV Water Customers
Santa Clarita Valley Water customers will receive a notice in the mail next week about proposed water rate changes over the next five years.
Thursday, Apr 22, 2021
Overturned Truck Prompts SIG Alert at I-5, SR-126 Freeways
A 75,000-pound semi-truck carrying paper products overturned, causing closure of the outer most lane of northbound Interstate 5 at State Route 126 Thursday morning, according to California Highway Patrol Officer Peter Nicholson.
Keep Up With Our Facebook

Latest Additions to SCVNews.com
The Santa Clarita City Council will be holding a Budget Committee meeting virtually Monday, April 26, at 2:00 p.m.
April 26: Santa Clarita City Council Budget Committee Virtual Meeting
If you received the unimaginable news that your child had cancer, would you know where to turn? For families in the Santa Clarita and surrounding valleys, the Michael Hoefflin Foundation for Children’s Cancer has been the go-to advocate providing resources and care for over 26 years.
Michael Hoefflin Foundation Hosting Move4MHF Virtual Fundraiser
The city of Santa Clarita’s Concerts in the Park series, presented by Logix Federal Credit Union, is scheduled to return this summer after a year off in 2020.
City Announces Return of Concerts in the Park
Santa Clarita Valley Water customers will receive a notice in the mail next week about proposed water rate changes over the next five years.
Proposed Rate Changes Coming to SCV Water Customers
A 75,000-pound semi-truck carrying paper products overturned, causing closure of the outer most lane of northbound Interstate 5 at State Route 126 Thursday morning, according to California Highway Patrol Officer Peter Nicholson.
Overturned Truck Prompts SIG Alert at I-5, SR-126 Freeways
LOS ANGELES (CN) — A day after a federal judge ordered the city and county of Los Angeles to take widespread action to quickly eradicate homelessness and audit the response to the crisis — including by ponying up $1 billion in an impound account within a week — attorneys for the city and county announced they will appeal the order as likely unlawful.
L.A. County Appealing $1 Billion Order to House Skid Row Homeless
SACRAMENTO — The California Department of Education (CDE) released Thursday K–12 public school enrollment data for the 2020–21 academic year.
Findings Show Overall California K-12 Enrollment Down
SACRAMENTO – State Sen. Scott Wilk, R-Santa Clarita, announced Thursday that Senate Bill 546 (SB 546), which provides “LifeLine” phones to foster youth, recently passed out of the Senate Human Services Committee with unanimous support.
Wilk’s Foster Youth LifeLine Bill Clears Human Services Committee
1974 - Gov. Ronald Reagan speaks at dedication of COC's first permanent building, the William G. Bonelli Instructional Resource Center [story]
Ronald Reagan
The Los Angeles County Department of Public Health confirmed Wednesday 35 new deaths and 439 new cases of COVID-19, with 27,612 total cases in the Santa Clarita Valley.
Wednesday COVID-19 Roundup: SCV Cases Total 27,612; Public Health Encourages Safety Measures,Vaccinations to Reduce Risk of Getting COVID-19
Castaic Middle School (CMS) has been recognized as a 2021 School to Watch (STW) by the National Forum to Accelerate Middle-Grades Reform in association with the California League of Schools, California Department of Education, and California Middle Grades Alliance.
Castaic Middle School Recognized for Academic Excellence
Castaic Lake is one of three freshwater lakes in Los Angeles County that will reopen for the Los Angeles County Department of Parks and Recreation Junior Lake Lifeguard Program this summer.
County Reopens Junior Lake Lifeguard Program at Castaic Lake
Caltrans District 7 Maintenance crews will be out in force across Los Angeles and Ventura counties to mark Earth Day on Thursday, April 22.
Caltrans to Celebrate Earth Day 2021 with Litter Clean-Up
Applications are now open for the 2021-22 CREATIVE Connection program, a nine-month leadership training and fellowship program designed for professionals interested in serving on nonprofit boards to develop and grow as leaders through board service training and field experience with a nonprofit.
Applications Open for 2021-22 ‘CREATIVE Connection’ Program
Detectives and loved ones described the charges filed Monday by the District Attorney’s Office against James “Matthew” Dorsey — the estranged husband accused of stabbing his wife to death in Saugus last week — as a “miscarriage of justice.”
Family, Detectives Call Saugus Murder Charges a ‘Miscarriage of Justice’
For the 93rd Oscars®, the Academy of Motion Picture Arts and Sciences is partnering with Facebook Inc. for an interactive, real-time virtual experience across multiple platforms, giving viewers an opportunity to engage with creators and fellow fans, watch live interviews with Oscar® winners, and get an exclusive glimpse behind the scenes of this year’s show.
93rd Oscars® to Include Interactive Digital Partnership With Facebook
CSUN concludes the 2021 women's tennis regular season Wednesday when the Matadors host Cal State Fullerton. Coverage on BigWest.tv begins at 2 p.m.
CSUN Hosts Cal State Fullerton In Regular Season Finale Wednesday
American Sports Entertainment Company (ASEC), along with the LA Kings and the City of Santa Clarita, is seeking proposals for the operation of retail and restaurant spaces at The Cube – Ice and Entertainment Center, located at 27745 Smyth Drive.
The Cube Seeks Pro Shop, Restaurant Partners
The Los Angeles County Department of Public Health is announcing that this week, everyone living or working in L.A. County 16 and older can receive the vaccine at the new Palmdale and Lancaster vaccination sites without setting up an appointment ahead of time.
No Appointments Needed This Week at New COVID-19 Vaccination Sites in Palmdale, Lancaster
1994 - Valencia Mercedes co-owner Eddie Murray sets MLB record for switch-hit home runs in games (11 times) [story]
Eddie Murray
College of the Canyons proudly welcomes highly esteemed songwriters for Broadway and film, Lynn Ahrens & Stephen Flaherty, to the School of Visual & Performing Arts’ Virtual Industry Insight Series on Tuesday, April 27.
April 27: COC Presents an Evening with Songwriters Lynn Ahrens, Stephen Flaherty
Los Angeles County’s $36.2 billion Recommended Budget, focused on expanding and sustaining extensive safety net services, will be presented to the Board of Supervisors on Tuesday, by Chief Executive Officer Fesia Davenport.
L.A. County Unveils 2021-22 $36.2 Billion Proposed Budget
The Los Angeles County Department of Public Health confirmed Tuesday 33 new deaths and 360 new cases of COVID-19, with 27,595 total cases in the Santa Clarita Valley.
Tuesday COVID-19 Roundup: L.A. County Remains in Orange Tier; SCV Cases Total 27,595
As the inventory of homes listed for sale during March in Santa Clarita fell 38.3 percent, sales of homes and condominiums took off, with the condo median price setting a record, the Southland Regional Association of Realtors reported Tuesday.
Median Price of SCV Condominiums Sets Record
%d bloggers like this: