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

Sylvie Jewelry Auranova Collection Campaign Imagery
CollectionsApr 25, 2025
Sylvie Looks to Water in New Sculptural Bridal Collection

“Shell Auranova” is the next generation of the brand’s bridal line, featuring half-bezel engagement rings with bold and fluid designs.

Pomellato Nudo toi et moi ring
FinancialsApr 25, 2025
Kering’s Jewelry Brands Persevere as Q1 Sales Sink 14%

Boucheron and Pomellato performed well in an otherwise bleak quarter for Kering amid struggles at Gucci.

Deborah Meyers Experience The Birds Earrings
EditorsApr 25, 2025
Piece of the Week: Deborah Meyers Experience’s ‘The Birds’ Earrings

Designer Deborah Meyers created her birds from oxidized sterling silver, rose-cut diamond eyes, and Akoya Keshi pearl feathers.

ejap cohort 1872x1052.png
Brought to you by
Emerging Jewelers Accelerator Program Announces Second Cohort of Aspiring Jewelry Entrepreneurs

Six new retail businesses were selected for the 2025 program, which began in January.

Melee diamonds from De Beers
SourcingApr 25, 2025
De Beers Sales, Production Fall in Q1 Amid Uncertainty

The company said it expects sightholders to remain “cautious” with their purchasing due to all the unknowns around the U.S. tariffs.

Weekly QuizApr 24, 2025
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
LIM-401 2024 National Jeweler Supplier Bulletin- iD100 Web and Eblast FINAL (1).jpg
Supplier BulletinApr 24, 2025
Protect Your Customers and Your Business

Sponsored by the Gemological Institute of America

Wolf CEO Simon Wolf
EditorsApr 24, 2025
Q&A: Wolf’s CEO Talks U.S. Expansion

Simon Wolf shares why the time was right to open a new office here, what he looks for in a retail partner, and why he loves U.S. consumers.

gia1d100 btyb.jpg
Brought to you by
Protect Your Customers and Your Business

The risk of laboratory-grown diamonds being falsely presented as natural diamonds presents a very significant danger to consumer trust.

Iowa jeweler Herman Ginsberg
IndependentsApr 24, 2025
Longtime Iowa Jeweler Herman Ginsberg Dies at 99

A third-generation jeweler, Ginsberg worked at his family’s store, Ginsberg Jewelers, from 1948 until his retirement in 2019.

Charles & Colvard moissanite ring
FinancialsApr 24, 2025
Charles & Colvard Delisted From Nasdaq Due to Noncompliance

The company failed to file its quarterly reports in a timely manner.

Young Diamantaires
SourcingApr 24, 2025
Young Diamantaires Transition to Nonprofit

The organization also announced its board of directors.

Mined + Found "Hope" Matchbox Locket
TrendsApr 24, 2025
Amanda’s Style File: So Charming

Charms may be tiny but with their small size comes endless layering possibilities, from bracelets to necklaces and earrings.

Jason McNary accepting FGI Fine Jewelry Rising Star award for Paola Sasplugas
Events & AwardsApr 23, 2025
PDPaola Creative Director Wins FGI’s ‘Rising Star’ Award

Paola Sasplugas, co-founder of the Barcelona-based jewelry brand, received the Fine Jewelry Award.

1999 Cosmograph Daytona, Ref.16516
AuctionsApr 23, 2025
Rare Custom Rolex Daytona Heads to Auction

A platinum Zenith-powered Daytona commissioned in the late ‘90s will headline Sotheby’s Important Watches sale in Geneva next month.

Woman wearing Zales jewelry
MajorsApr 22, 2025
Zales’ Rebrand Takes Playful Approach to Fine Jewelry

The Signet Jewelers-owned retailer wants to encourage younger shoppers to wear fine jewelry every day, not just on special occasions.

JAR Apricot Blossom bracelet
AuctionsApr 22, 2025
Christie’s to Auction JAR Jewelry Collection

The 21 pieces, all from a private collector, will be offered at its Magnificent Jewels auction next month.

National Jeweler columnist Lilian Raji
ColumnistsApr 22, 2025
The PR Adviser: Building Buzz Through Word of Mouth

Lilian Raji answers a question from a reader who is looking to grow her jewelry business but has a limited marketing budget.

Avi Levy
GradingApr 22, 2025
Avi Levy Is GCAL By Sarine’s New Chief Growth Officer

GCAL by Sarine created the new role to sharpen the company’s focus on strategic partnerships and scalable expansion.

Scottsdale Fine Jewelers store exterior
IndependentsApr 22, 2025
Brinker’s Jewelers Acquires Fellow Independent

The Indiana jeweler has acquired Scottsdale Fine Jewelers in Scottsdale, Arizona.

Cartier Exhibition Installation at Victoria & Albert Museum
Events & AwardsApr 21, 2025
An Exhibition Exploring the History of Cartier Is Now on Display

“Cartier: Design, Craft, and Legacy” opened earlier this month at the Victoria and Albert Museum in London.

Bill and Birdie Levine of Van Cott Jewelers
IndependentsApr 21, 2025
New York Jeweler to Close After 111 Years

Van Cott Jewelers in Vestal, New York, is hosting a going-out-of-business sale.

IJO Director Samantha Larson
IndependentsApr 21, 2025
IJO Names New Director of Vendor Relations, Merchandise Strategy

Industry veteran Samantha Larson has held leadership roles at Borsheims, McTeigue & McClelland, Stuller, and Long’s Jewelers.

Events & AwardsApr 21, 2025
Jewelers of Louisiana, Mississippi Jewelers Association to Co-Host Convention

The two organizations will hold the educational event together this fall in Mississippi.

Daymond John
Events & AwardsApr 18, 2025
Daymond John to Give Keynote at JCK Las Vegas

The entrepreneur and “Shark Tank” star will share his top tips for success.

Dukachi Easter Bread Pendant
CollectionsApr 18, 2025
Piece of the Week: Dukachi’s ‘Easter Bread’ Pendant

The Ukrainian brand’s new pendant is modeled after a traditional paska, a pastry often baked for Easter in Eastern European cultures.

Bremer Jewelry
IndependentsApr 18, 2025
Bremer Jewelry to Reveal Renovated Store

The jeweler has announced a grand reopening for its recently remodeled location in Peoria, Illinois.

Tiffany & Co. Strong Like Mom campaign
MajorsApr 18, 2025
Tiffany & Co. Employees Star in Mother’s Day Campaign

The “Strong Like Mom” campaign features moms who work at Tiffany & Co. and their children.

×

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