Sears Holdings Corporation has announced to close 29 Sears stores and 11 Kmart outlets by February next year. The liquidation sales for the soon to be closed outlets are expected to take place by the end of next week.
It is important to add here that the retailer filed for Chapter 11 bankruptcy protection in October and announced the shuttering of 142 of its stores along with closure of 40 stores in a bid to move swiftly during the bankruptcy process.
Notably, Sears used to be America’s leading retailer before Walmart and Amazon took over the market in the country and due to limited funding that affected its stores’ revamping, resulting in the retailer lagging behind its competitors.
Reportedly, the retailer has said that the closures are happening to reduce the cost and avoid a possible collapse, as it aims to rebuild itself. According to Reuters, Sears is suffering from bankruptcy as it failed to pay the debt worth the US $ 134 million and the retailer’s overall debt amount crosses US $ 5.6 billion mark.
Furthermore, the retailer has also marked out that out of its 1,000 outlets, around 400 yield profits and other stores are under-performing making it tough for the retailer to survive in the market.
The deadline to process a bankruptcy financing package for the American retailer ends on December 15th.
