Tuesday, March 26

US Retail Chain Sears Applies For Bankruptcy Protection

US Retail chain Sears applies for Bankruptcy Protection. The American retail chain Sears has filed for bankruptcy protection at a court in the state of New York.

 

The company has been striving with financial problems for some time. In recent years, the 125-year-old group experienced losses, and hundreds of branches closed their doors.

From documents submitted to the court, it appears that Sears has more outstanding debts than assets.

Under the requested Chapter 11 scheme, companies receive a kind of postponement of payment.

It allows them, among other things, to intervene thoroughly in the debt burden, without necessary closure of the company.

It is seen as the last resort to solve serious financial problems.

Sears will close 142 loss-making stores. For the sale of some stores, the company would have already signed an agreement.

Also reported that Edward Lampert resigns his position as CEO.

Lampert will remain as chairman of the company. He lent a lot of his own money to Sears to keep the chain afloat.

About 90,000 employees currently work at the roughly 700 shops of Sears.

An unlikely future awaits them. The chain has been one of the largest department store chains in the US since the 1960s.

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