Jump to Navigation

Retailing icon Sears on verge of bankruptcy

Another retailing icon appears to be edging toward a bankruptcy filing. Sears, one of the most recognized names in American retailing, is expected to file a business bankruptcy petition. The decline of Sears appears to be the result of a changing retail climate in the country and a serious of questionable management decisions.

Sears, Roebuck & Co. was founded shortly after the Civil War, and it soon became known as the go-to-for-everything store. Its huge Christmas catalogs were part of many families' holiday traditions, but the store's inability to compete with large box retailers, such as Wal-Mart, and online marketers, such as Amazon, caused management to sell off a number of profitable brands, such as Craftsman tools and Land's End. Over the last five years, Sears has lost about $5.8 billion; over the last decade, the company has closed a thousand stores. The company is currently searching for interim financing of approximately $500 million that will allow it to survive until the end of 2018.

Some observers blame Edward S. Lampert, the company's current CEO, for the company's poor performance and impending bankruptcy. Lampert is a former hedge fund manager who became Sears CEO in 2005 with no experience in retailing. Since then, he has sold off a number of successful brands to companies in which he already owned a controlling share. Many of those companies have become very successful on their own. A measure of the company's downfall is the price of its shares. In 2007, one share of the company's stock was worth $120; on October 12, it closed at 40.7 cents.

Like many bankruptcies, the demise of Sears cannot be blamed on a single factor. Many businesses fail for a variety of reasons. Anyone who is concerned about the fate of a business may wish to consult an experienced bankruptcy attorney for advice on whether bankruptcy can help the business stay afloat or whether it should be dissolved.

No Comments

Leave a comment
Comment Information
Subscribe to This Blog's Feed

CONTACT US

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

FindLaw Network

Memberships

Law Office of Ronald V. De Caprio BBB Business Review

Location

Law Office of Ronald V. De Caprio 65 West Ramapo Road Garnerville, NY 10923 Phone: 845-406-4201 Toll Free: 866-936-8113
Map & Directions