Sears On The Verge Of Liquidation, Not Bankruptcy

[Olivia]

I feel nostalgic for the Sears that was at our largest shopping center--Ala Moana Shopping Center. Sears was one of the anchors when the shopping center first opened in 1959.

For a few years in the seventies, I worked close by and I would have lunch at the restaurant that was at the street level of Sears. I remember taking the escalator down to there and already smelling the popcorn being popped and other stuff like hot dogs. That part was separate from the restaurant, though, the restaurant itself being operated as a concession, same as lots of other concessions in the store.

The thing, though, that got me at that Sears was the way it was so easy to get lost I guess because of the configuration of especially the main floor. It was very circular and so a bit difficult to find again the department where you had just left. And there were so many entrances and exits you had to keep walking around to find the one you wanted.

 

[911]

This is bad news for us consumers. Soon, we will have just two choices for shopping; Walmart and Amazon. Target and Kohls seem to be in fair condition and I can still buy my Craftsman tools from other retailers, so all is not lost.

 

[fuzzybuddy]

I really don't know what the difference between liquidation and bankruptcy is. Sears does sound like it is out of step with the world. It ain't 1950 with the new Spring catalog in the mail. I do love their appliances.

 

[gennie]

Who remembers the old days of Sears when you never bought a large item until it went on sale. If an emergency forced you to buy at full price, you either bought and felt scammed or bought somewhere else. Bed, Bath & Beyond with their $20 off coupons create the same feeling if circumstances force you to pay without a coupon.

 

[WhatInThe]

I really don't know what the difference between liquidation and bankruptcy is. Sears does sound like it is out of step with the world. It ain't 1950 with the new Spring catalog in the mail. I do love their appliances.

With liquidation, the business is done-no reorganizing, restructuring etc. Bankruptcy allows a business to reorganize along with getting out of many bills.

 

[Butterfly]

With liquidation, the business is done-no reorganizing, restructuring etc. Bankruptcy allows a business to reorganize along with getting out of many bills.

Actually, they are both forms of bankruptcy. Below is an explanation of the two types:

"Chapter 7

The purpose of Chapter 7 bankruptcy is to immediately liquidate the business debtor’s assets. When a debtor files for Chapter 7, a trustee is appointed to take charge of the business. At that time, the trustee begins the process of liquidating all assets. Once the trustee has recovered and liquidated all assets, then the creditors are able to file claims with the court requesting payment. The assets are then divided among the creditors, allowing also for trustee fees and costs.
Chapter 7 is for businesses that see no viable financial future in their business and are too far in debt to find a way out. At that point, there is no need for a restructuring plan, but just a way to get out of the business with minimal personal damage.


Chapter 11

Chapter 11 bankruptcies are designed to allow a struggling business time to restructure or reorganize in order to revive the business. When a business files for Chapter 11 bankruptcy, it is typically allowed to continue operating — under the supervision of the bankruptcy court and without interference from creditors. The debtor will need to negotiate a reorganization plan with creditors, which usually provides them partial payment. Creditors or other parties can file a competing plan if they feel the proposed plan is not in their best interest.
A Chapter 11 filing is best for a business that is behind in debt payments, but which still has some amount of assets and regular income. "

 

[Giantsfan1954]

I agree,I think their merger with K-mart was the 1st in a long series of missteps.
I shop online frankly because crowds make me very nervous these days,to many crazies with guns.

 

[WhatInThe]

Liquidation apparently is still a distinct possibility as a deal by it's major share holder and his own hedge fund is about to fall through.

https://finance.yahoo.com/news/sears-said-prepare-possible-liquidation-043659764.html

 

[Don M.]

It's just a question of time before Sears closes their doors. In recent years, the Only brands they sold worth buying were Craftsman tools, and Kenmore appliances. I totally agree that their purchase of KMart was a bad decision, and nothing has happened in recent years to keep them competitive with other stores and online shopping. A couple of years ago, they closed one of their stores in Jefferson City, MO., and we browsed their "going out of business" sale, and I was somewhat disgusted at the "Game" they were playing....I was in the market for a new riding mower, and they had a couple of models that usually ran in the $2,000 range on "Sale" for almost $3,000. That was the last time I walked into one of their stores.

 

[Butterfly]

It's just a question of time before Sears closes their doors. In recent years, the Only brands they sold worth buying were Craftsman tools, and Kenmore appliances. I totally agree that their purchase of KMart was a bad decision, and nothing has happened in recent years to keep them competitive with other stores and online shopping. A couple of years ago, they closed one of their stores in Jefferson City, MO., and we browsed their "going out of business" sale, and I was somewhat disgusted at the "Game" they were playing....I was in the market for a new riding mower, and they had a couple of models that usually ran in the $2,000 range on "Sale" for almost $3,000. That was the last time I walked into one of their stores.

For some time, their prices have been way out of line with what you can get the same thing for elsewhere. I think that's a big part of their problem -- they are way out of touch with the marketplace. Why would I pay way more to Sears for something I can get for considerably less elsewhere? And I do think their merger with K-Mart was particularly ill-advised. I don't know about the K-marts elsewhere, but the one here (now closed) was a dump.

 

[Olivia]

We had a really nice Kmart here (Oahu) in a small shopping center near to me where I could walk there. It had really just about anything you could want including a food concession, furniture, plants, appliances, clothes and and lots more. And it was definitely not a dump. I really miss it.