The company may be new, but the challenges are the same09/03/2019 | ConsumerAffairs
A change in ownership has not stopped the bleeding at Sears. The retailer, acquired by a firm controlled by former CEO Eddie Lampert in February, says it is closing 100 more Sears and Kmart stores.
That’s in addition to the nearly two dozen Sears and Kmart stores already targeted for closing next month. And of course, it follows the shuttering of hundreds of Sears and Kmart stores over the last five years as the venerable retailer struggled against a rising sea of red in...
The beleaguered company is still struggling post-bankruptcy08/07/2019 | ConsumerAffairs
It’s a storyline that consumers have become all too used to over the past few years: Sears and Kmart are closing more store locations.
After being snatched up by former CEO Eddie Lampert earlier this year for $5.2 billion, Sears has continued to struggle financially. On Wednesday, new parent company Transform Co. said that it would be closing 21 Sears locations and 5 Kmart locations that have been unable to meet sustainable productivity levels.
“Our goal remains to retu...
Craftsman tools use parts from many countries, suit charges12/08/2004 | ConsumerAffairs
By Unknown Author
A class action lawsuit against Sears, Roebuck and Co alleges that Sears conducted false advertising and consumer fraud by advertising that its Craftsman tool line is "Made in the USA."
The suit alleges that promotions in ads, the website, on signs and labels claiming that Craftsman is "Made in the USA" led consumers to purchase the tools out of a sense of patriotism. Consumers were also led to believe that Craftsman is of high quality because it is "Made in the USA."
By Unknown Author
WW, a former Sears employee, writes: Next time you're in Sears or another store buying appliances or electronics, watch out when you hear: "This product is also eligible for our 3 year Maintenance Agreement program which covers repairs and replacements for any damages due to wear and tear, and includes an annual preventive maintenance check all of which will save you the expensive cost of repairs and give you peace of mind....."
You will often hear this during a sales pre...
It's probably cheaper to pay for repairs yourself10/29/2013 | ConsumerAffairs
By Jennifer Abel
There’s always been wide disagreement about whether consumers who buy major appliances should also pay extra for “extended warranties,” “maintenance agreements” and similar insurance-ish policies.
The argument against it usually boils down to, “A good appliance shouldn’t need protection beyond the standard warranty and return policy anyway.” The arguments in favor are similar to any pro-insurance attitude: “Better to spend a little money now, just in case something expe...
The retailer is closing more stores to cope with mounting losses12/09/2016 | ConsumerAffairs
Sears Holdings, which operates both Sears and Kmart department stores, reported third quarter earnings that were a disappointment to just about everyone, including Sears Holdings executives.
The company reports a net loss in the third quarter of $748 million. In the third quarter of 2015, the company lost $454 million.
While all brick-and-mortar retailers have struggled with the changing consumer landscape, Sears appears to have had a particularly hard time coping.
The company’s CEO says the retailer has been ‘fighting to survive’07/03/2018 | ConsumerAffairs
At the end of May, Sears announced that it would be closing 63 stores from a total of 100 underperforming stores. Now, the retailer has added ten more Sears and Kmart stores to its list of locations slated to shut down in September.
Sears Holdings said it told employees last week that it would be closing an additional nine Sears stores and one Kmart in late September. Liquidation is set to begin as early as July 13.
In total, 62 Sears and 16 Kmart locations were identifie...
The company is reportedly struggling to secure needed financing11/09/2018 | ConsumerAffairs
Sears Holdings, the parent company of Sears and Kmart stores, continues to get smaller.
The company has announced it is closing an additional 40 stores by early 2019. That's in addition to the 142 unprofitable stores it expects to close before the end of this year.
The venerable retailer filed for bankruptcy protection last month after shrinking its footprint to just 700 stores. The footprint will get smaller, however, as the company desperately seeks additional capital t...
The company continues its 'transformation' effort to return to profitability08/25/2017 | ConsumerAffairs
It’s been a year full of downsizing and cost cutting for Sears Holdings. In January, the company announced that it would be closing 150 Sears and Kmart locations. A couple months later, officials said in an SEC filing that there was “substantial doubt” that the business could continue unless it found a way to raise additional capital.
Only one month later, Sears opted to close another 50 auto center locations and 92 Kmart pharmacy operations, with CEO Edward S. Lampert s...
Sears’ former CEO will bid to keep stores operating but will have to compete with others who only want its assets01/11/2019 | ConsumerAffairs
It’s likely to be an anxious weekend for as many as 68,000 Sears and Kmart employees as their jobs continue to hang in the balance. But late week events make their prospects appear a little brighter.
After all, at mid-week, their company Sears Holdings petitioned a bankruptcy judge to let it close its remaining stores and liquidate its assets, saying former CEO Eddie Lampert’s $4.4 billion offer to buy the remaining assets wasn’t good enough.
But Lampert has raised his bi...
The company will close another 142 stores10/15/2018 | ConsumerAffairs
With a huge debt payment just hours away, Sears Holdings -- the company that operates Sears and Kmart stores -- filed for Chapter 11 bankruptcy protection early Monday.
The company said the move was made possible by an agreement among its lenders who are owed billions of dollars to give the venerable retailer one last chance to become solvent. Later today, Sears Holdings was scheduled to make a $134 million dollar debt payment. Bankruptcy protection will allow Sears to r...
Creditors claim Lampert is to blame for the retailer’s demise01/18/2019 | ConsumerAffairs
If the television networks ever run out of material for soap operas, maybe they can just televise the Sears bankruptcy saga, which has so far been filled with plot twists.
Former Sears Holdings CEO Eddie Lampert and the hedge fund he controls, ESL Investments, finally prevailed with a $5 billion offer to take over what’s left of the company and keep 400 Sears and Kmart stores open.
But not everyone is happy. The unsecured creditors who are still owed money have filed a mo...
The company is opening a new Appliances and Mattresses concept store in Texas06/23/2017 | ConsumerAffairs
There are many out there questioning Sears’ ability to survive in the retail market, including executives from Sears itself.
Further evidence of the retailer’s struggle surfaced in an announcement made Thursday, which detailed the closing of 20 more stores in several different states. The decision to close these locations brings the total number this year to 235. According to Business Insider, the total number of stores has diminished to 1,180 from 2,073 five years ago.
The company continues to downsize in an effort to cut costs and return to profitability04/24/2017 | ConsumerAffairs
Sears Holdings has been in a downward spiral for some time now. On numerous occasions, we’ve reported on the company’s downsizing efforts.
At the beginning of the year, the company closed 150 Sears and Kmart locations and spun off its Craftsman Tools line. Recently, company officials stated in an SEC filing that there was “substantial doubt” that the franchise could continue on unless it found a way to raise additional capital.
Now, the company has announced that it will ...
The retailer will live to fight another day12/31/2018 | ConsumerAffairs
At the very last minute, former Sears CEO Eddie Lampert made his $4.6 billion bid official, saving the long-time retailer from liquidation. It ended a suspenseful Friday when it appeared likely that Sears was at the end of its rope.
Terms of the offer were not made public and it must still be ratified by the Sears Holdings board of directors in January.
The offer comes from an affiliate of Lampert’s hedge fund and is only for 425 of the remaining Sears and Kmart stores. T...
The retailer says it has identified 100 more unprofitable locations05/31/2018 | ConsumerAffairs
Sears announced Thursday that it will be closing another 63 stores “in the near future.”
More closures could be on the way, as the retailer indicated that the 63 stores it plans to close are among a list of 100 unprofitable locations.
In January, the retailer announced that it would be shuttering 150 unprofitable Sears and Kmart locations. A few months later, the company said in an SEC filing that there was “substantial doubt” that it could continue operating unless it...
Sale of the bankrupt retailer’s assets has been marked by litigation05/29/2019 | ConsumerAffairs
Sears Holdings filed for bankruptcy in October and sold off its assets in February, purchased by former CEO Eddie Lampert for $5 billion. But it seems that’s not the end of the story.
The transition has been marked by lawsuits, the latest filed by Transform Holdco LLC, a subsidiary of Lampert’s ESL Investments Inc., established to acquire and operate for former Sears assets.
At the time of the sale, Lampert said he planned to operate 400 Sears and Kmart stores but also sa...