Majors

Sears, a Retail Institution Since 1893, Declares Bankruptcy

MajorsOct 15, 2018

Sears, a Retail Institution Since 1893, Declares Bankruptcy

The company is looking to reorganize and emerge as a smaller retailer.

2017_Sears-store.jpg
Founded in 1893 by Richard W. Sears and Alvah C. Roebuck, Sears started as a mail-order catalog business selling watches to farmers. Today, Sears Holdings Corp. has 687 Sears and Kmart stores in 49 states, 400 of which it is aiming to keep open.

White Plains, N.Y.—Sears, an icon of American retail that started as a mail-order watch business 125 years ago but has been in decline for decades, has declared bankruptcy.

The Chapter 11 filing came early Monday morning in federal bankruptcy court in White Plains, N.Y., with Sears Holdings Corp. indicating that it plans to reorganize and emerge, albeit as a smaller retailer.

In the filing, the company states it wants to find a buyer that will continue to operate the approximately 400 Sears and Kmart stores that it says are economically viable.

Of the other 287 stores, about half—142—will close and begin going-out-of-business sales right now in order to save the company money and take advantage of the holiday season. Sears said it will evaluate the remaining stores as the Chapter 11 case moves along.

The company also plans to sell off non-core assets, such as intellectual property like the Kenmore appliances and DieHard automotive battery brands, and specialty businesses, like Sears Auto Centers.

In a declaration from Chief Financial Officer Robert A. Riecker filed in conjunction with the bankruptcy petition, he states that filing Chapter 11 “present(s) an opportunity for Sears to once again transform its business and to position itself for success in the 21st century.

“The debtors hope that the company will emerge from these Chapter 11 cases, whether pursuant to a chapter 11 plan of reorganization or a successful sale process, as a streamlined and profitable version of itself.”

Founded in 1893 by Richard W. Sears and Alvah C. Roebuck, Sears started as a mail-order watch business and later expanded to sell housewares and even entire houses. It catered to customers in remote rural areas who otherwise would not have had access to a wide range of goods.

The company began opening brick-and-mortar stores in urban areas in the 1920s and 1930s when more people started moving into cities, then migrated to the suburbs to anchor malls in the ‘60s and ‘70s as the country’s population shifted once again.

Sears became a leading retailer of tools, appliances, lawn and garden care products, and automotive repair and maintenance.

In the 1990s, as “big-box” retailers began to grow in popularity and steal market share from traditional department stores, Sears added a big-box chain to its stable by merging with Kmart.

In his declaration, Riecker stated that while Sears has adapted its business to navigate population trends and consumer

preferences many times over the years, its efforts to adjust to the realities of retail today—including closing stores and putting more money into online operations—have fallen short.

As it has been forced to close stores while losing market share to competitors, the retailer’s revenues have declined 54 percent over the past five years, totaling $16.7 billion in fiscal year 2017, while its debt has swelled to more than $5 billion.

Sears Holdings Corp.’s official bankruptcy filing, made in U.S. Bankruptcy Court for the Southern District of New York, lists $7 billion in assets but $11.3 billion in liabilities.

In the wake of the company’s Chapter 11 filing, CEO Eddie Lampert has stepped down, though he will remain chairman of the board.

The company has created an office of the CEO to manage day-to-day operations that is staffed by: Riecker; Leena Munjal, chief digital officer, customer experience and integrated retail; and Gregory Ladley, president of apparel and footwear.
Michelle Graffis the editor-in-chief at National Jeweler, directing the publication’s coverage both online and in print.

The Latest

Jemma Wynne Forme Toggle Necklace
CollectionsJul 25, 2025
Piece of the Week: Jemma Wynne’s ‘Forme’ Necklace

Anne Hathaway was seen wearing the toggle necklace three times while filming scenes for “The Devil Wears Prada 2.”

September Hong Kong jewelry show
Events & AwardsJul 25, 2025
Pre-Registration Open for September Hong Kong Show

Jewellery & Gem World Hong Kong is scheduled for Sept. 15 to 21, and buyer pre-registration will be available until Sept. 7.

Bulgari Celestial Mosaic spinel necklace
FinancialsJul 25, 2025
LVMH Sales Slip in H1 Amid ‘Prevailing Uncertainties’

Renovations at Tiffany & Co. stores ate into profits in the company’s watch and jewelry division.

rio-article photo-diamond.jpg
Brought to you by
Taking the Moment Head On: How Rio Grande Champions the Present & Future of Fine Jewelry

As a leading global jewelry supplier, Rio Grande is rapidly expanding and developing new solutions to meet the needs of jewelers worldwide.

Mark and Candy Udell
Events & AwardsJul 24, 2025
2 Retailers to Receive 2026 Gem Award for Lifetime Achievement

Mark and Candy Udell of London Jewelers will receive the honor at the 24th annual Gem Awards next March.

Weekly QuizJul 25, 2025
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
De Beers marine mining vessel the SS Nujoma
SourcingJul 24, 2025
De Beers Sees Diamond Production Sink 36% in Q2

While struggles continue at the mining and trading end of the pipeline, consumer demand for diamond jewelry is holding steady.

Francesca Villa Fantasia Collection The Crab Pendant, The Mermaid Pendant, Keep Dancing Seahorse Pendant, Keep Dancing Ladybug Pendant, Secret Dreams Pendant, The Puffer Fish Takes Flight Pendant
CollectionsJul 24, 2025
Francesca Villa Adds Dimension to Her Intaglio Characters

The “Fantasia” jewelry collection turns the intaglio animals from her “Close Encounters” collection into 3D characters.

an instructor and a student in a bench jewelry classroom
Brought to you by
Investing in the Next Generation of Bench Jewelers

The Seymour & Evelyn Holtzman Bench Scholarship from Jewelers of America returns for a second year.

Breitling’s special Eagles Super Bowl watch on gold bracelet
WatchesJul 24, 2025
Breitling Drops Super Bowl Watch Honoring the Philadelphia Eagles

The special Classic Avi Chronograph 42 with an Eagles-green dial is limited to 59 pieces, a nod to the Super Bowl Philadelphia just won.

Stock image of crime scene tape
CrimeJul 23, 2025
JSA Warns of Violent String of Smash-and-Grabs in California

JSA has received reports of mobs swarming jewelry stores, driving cars into the storefront or smashing through the windows.

Silvia Furmanovich Kasmir Collection Carnelian Bracelet and Sketch
CollectionsJul 23, 2025
Silvia Furmanovich’s ‘Kashmir’ Collection Is a Tribute to Northern India

The “Kashmir” collection features centuries-old craft techniques made in collaboration with the region’s master papier-mâché artisans.

Bench jeweler holding a bracelet and a tool
IndependentsJul 23, 2025
Montreal’s Ecksand Eyes Move to SoHo

Creative Director Erica Bianchini shared why the jeweler is looking to expand into the U.S. and how it’s putting Canadian craftsmanship on the map.

LAFD Fire Station 44 and Fire Station 16
IndependentsJul 23, 2025
IJO Raises Nearly $37K for LA Fire Relief

Two Los Angeles Fire Department stations plan to use the donations to upgrade their equipment and tools.

A Vanitas by Hannah Martin and Guy Berryman Sothebys
CollectionsJul 22, 2025
Jewelry With a Rock ‘n’ Roll Aesthetic Heads to Sotheby’s London

Next week, the auction house will kick off a selling exhibition of jewelry by British artist Hannah Martin and Coldplay’s Guy Berryman.

Cover of the book “Flawless: Inside the Largest Diamond Heist in History”
SourcingJul 22, 2025
Antwerp Diamond Heist Documentary Coming to Netflix

“Stolen: Heist of the Century” is based on “Flawless,” the book about the middle-of-the-night theft, and will debut on Netflix in August.

Emmanuel Raheb
ColumnistsJul 22, 2025
The Gifting Gap: How to Market Jewelry Beyond the Holidays

Emmanuel Raheb shares the top five gifting moments outside of major holidays that jewelers should build marketing campaigns around.

NY Now
Events & AwardsJul 22, 2025
NY Now’s Summer Market Returns in August

The wholesale trade show’s Luxury Lifestyle section will showcase established and emerging jewelry designers.

National Associate of Jewelry Appraisers Logo
Events & AwardsJul 21, 2025
NAJA’s 2025 ‘Ace It’ Conference To Go Virtual

The mid-year conference for jewelry and watch appraisers is slated for Aug. 9 to 10 on Zoom.

Jacquie Aiche graduated turquoise beaded necklace
TrendsJul 21, 2025
Amanda’s Style File: Graduated With Honors

Graduated stones make for elevated tennis-style pieces and dramatic statement necklaces.

24th Gem Awards Show Logo
Events & AwardsJul 21, 2025
Gem Awards Now Accepting Nominations for 2026

Nominations in the categories of Jewelry Design, Media Excellence, and Retail Innovation will be accepted through July 30.

CCWW Designs Multiple Shell Charm Necklace
TrendsJul 18, 2025
Piece of the Week: CCWW Designs’ Shell Charm Necklace

The charm necklace features six nautical charms of shells and coral that founder Christina Puchi collected on Florida’s beaches.

The Plumb Club board members
MajorsJul 18, 2025
Plumb Club Elects New Board Members

The organization elected its youngest vice president as it looks to draw in fresh talent.

Jewelry industry veterans Brad Campbell and John Liebler
TechnologyJul 18, 2025
Brad Campbell, John Liebler Join Clientbook’s Executive Team

Campbell joins the company as vice president of business development while Liebler is the new vice president of operations.

Silver, Gold, and Bronze Medals for Italy Olympic Winter Games
CollectionsJul 17, 2025
2026 Winter Olympic Medal Design Symbolizes Unity

The medals feature a split-texture design highlighting the Games’ first time being hosted by two cities and the athletes’ journeys.

vimeo screenshot.png
Supplier BulletinJul 17, 2025
The INSTORE Jewelry Show 2025: Your Holiday Preparations, All Wrapped Up!

Sponsored by The INSTORE Jewelry Show 2025

Guinness
SurveysJul 17, 2025
The Most Recommended Brands in the World, According to YouGov

Globally, travel and transportation brands reigned, while in the U.S., alcoholic beverage companies and a lingerie brand took the top spots.

Gina Ferranti
IndependentsJul 17, 2025
Gina Ferranti of GiGi Ferranti Jewelry Dies at 59

The Brooklyn-based jewelry designer is remembered as a true artist and a rare talent.

×

This site uses cookies to give you the best online experience. By continuing to use & browse this site, we assume you agree to our Privacy Policy