Ebene News – US – Sears dies a silent and invisible death – KTVZ

Once the nation’s retail leader in the 1980s, the company that now owns the Sears and Kmart chains has been out of bankruptcy less than two years since It has avoided another trip ahead. bankruptcy court this year, as the Covid-19 pandemic sent department store chains such as JCPenney and Neiman Marcus through their own bankruptcies, while others like Lord & Taylor and Century 21 have announced that they would go bankrupt

But the fact that Sears is not bankrupt is not a sign of health, experts say The company has made little effort to reinvigorate stores, increase sales or turn around its bankrupt business It is possible that Sears has already gone out of business this year, except that the commercial real estate industry has collapsed, and Sears would likely find few offerings to suit its assets, if any

“Everything is up for grabs But of course there is no market for department stores,” said Mark Cohen, director of retail studies at Columbia University, himself a former executive of Sears “They are, for all intents and purposes, fact”

With no viable exit strategy, Sears and Kmart are slowly, quietly dying They are closing stores where possible and listing virtually every other location with commercial real estate brokers

There is little benefit to Sears in declaring bankruptcy, despite all the losses the now private company is surely dealing with (Sears finances are not public) Bankruptcy is useful in getting rid of its debts or other liabilities, but it is unlikely that any financial institution or supplier has granted credit to Sears and Kmart since they completed their previous reorganization in early 2019, said Reshmi Basu, a bankruptcy expert retail at Debtwire

The Sears and Kmart brands are therefore on life support, as there is so little to be gained by shutting them down completely once the commercial real estate market improves and new tenants can be found for their stores remaining, Sears will be under more pressure to shut down channels, experts say

“Sears is biding its time until the market is better,” said Neil Saunders, managing director and retail analyst at research firm GlobalData

The company continued to sell its brands which still have some value A year ago, it struck a deal to sell its DieHard automobile brand to Advance Auto Parts for $ 200 million It sold Innovel Solutions, its product delivery and installation business, to Costco for $ 1 billion in a deal announced in March Stanley Black and Decker purchased the Craftsman tool brand from Sears in 2017, and the company has sought a buyer for its Kenmore appliance business in recent years.

While spokespersons for the company did not answer questions about its financial situation, plans, or the number of stores remaining, store locators Sears and Kmart on their websites say only 74 department stores Sears are always open and 48 Kmarts

Those 122 branches are 60 fewer Sears stores than in May, when malls began to reopen after ‘non-essential’ retailers were denied closure to fight the pandemic And it’s down by compared to around 400 stores since coming out of bankruptcy and nearly 1,000 stores in February 2018, less than three years ago

Sears, Kmart

Ebene News – United States – Sears dies a silent and invisible death – KTVZ

Source: https://ktvz.com/money/2020/12/30/sears-is-dying-a-quiet-invisible-death/