AP Photo/Paul Sakuma
Liquidation sales will start soon at 142 unprofitable Sears stores that will close at the end of the year.
- Sears said Monday that it will close 142 more stores, part of its plans to file for Chapter 11 bankruptcy.
- Massive liquidation sales will start at the stores soon, the company said.
- Sears has closed hundreds of stores already in an effort to stay afloat, including 46 which are due to close next month.
- The company said that all stores will keep operating in the short-term, and that the company will continue trading into the crucial holiday period.
Sears confirmed plans to shut down 142 more stores as it filed for Chapter 11 bankruptcy on Monday, and says massive liquidation sales will start at the stores soon.
The company filed for Chapter 11 bankruptcy early on Monday, following a long battle to stay afloat amid a steep decline in sales and customer traffic.
On Monday, Seats announced in a statement that it would close 142 unprofitable stores, which are in addition to previously-announced closures. The company has yet to say which stores are closing.
All closures will be complete by the end of 2018, the statement said. Stores earmarked for closure will hold liquidation sales, discounting their stock in the hope of getting more cash quickly.
The statement said closing stores would give Sears the "flexibility to strengthen its balance sheet," undergo a "strategic transformation," and ultimately "return to profitability."
The company plans to keep remaining Sears and Kmart stores open over Christmas, and online and mobile platforms will continue to work as normal, it said. Loyalty programs and product delivery will also continue as normal, as will vendor payments and employee wages, it said.
The 142 new closures come in addition to a previous announcement that 46 stores would close in November.
Monday's news means that in total more than 440 Sears stores will have closed by the end of 2018.
REUTERS/Peter Morgan PM
Edward S. Lampert has stepped down as CEO of Sears Holdings.
Sears has seen sales cut in half since 2014, and has burned through cash and closed hundreds of stores in a bid to stay afloat.
The man in charge of Sears, Edward S. Lampert, has blamed the company's decline on the media, shifts in consumer spending, and the rise of e-commerce, among other reasons.
Sears said on Monday that Lampert has stepped down from his role as CEO of the company, effective immediately. He remains chairman of the board.
"Over the last several years, we have worked hard to transform our business and unlock the value of our assets," Lampert said in a statement. "While we have made progress, the plan has yet to deliver the results we have desired, and addressing the Company's immediate liquidity needs has impacted our efforts to become a profitable and more competitive retailer."
He said the Chapter 11 process would give Sears "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."
Read more about Sears' downfall:
- Sears' top spokesman jumps ship as reports emerge of a potential bankruptcy filing
- Sears is closing more stores, with some layoffs starting 2 days before Christmas
- Sears' CEO is making a last-ditch effort to avoid bankruptcy
- Sears debuts handwritten signs in stores in an apparent effort to slash costs
- 'This is all a sham': Ex-Sears executive says the CEO's new bid to revive Sears will kill off the 125-year-old retailer once and for all