Reports–Sears Preparing to File Chapter 11 Bankruptcy
Tuesday night, the Wall Street Journal reported Sears Holdings (the parent company of Sears and K-Mart) has hired a firm to being bankruptcy proceedings.
The report, which came after the markets closed on Wall Street, says Sears has hired M-III Partners to prepare the move, which could come as early as the end of this week.
No word on what exactly would occur, whether it's a liquidation type such as Toys R' Us, or a re-organizational move. Most experts agree there could be a selloff of most of it's stores, potentially affecting the Sears at Columbia Center.
But unlike the Toys R' Us situation and several others, one expert says Sears is a brand that "has no value" if it does go through with bankruptcy. Market Watch reports Toys R' Us and other companies had 'value' and a good name. Almost immediately after Toys R' Us closed, efforts began to rebuild and rebrand the chain on a smaller and different scale.
But Market Watch says Sears has done nothing to preserve it's value. The stores are mostly dilapidated, and most of the good sales staff left years ago. Chuck Tatelbaum, director of the noted financial law firm Tripp-Scott says, the Sears brand "has no value."
It will remain to be seen if the bankruptcy happens. If so, will Sears make it through? Toys R' Us had hoped to survive by restructuring, shedding stores and debt with the help of creditors, but those efforts fell through and the company was forced to close. Some experts say with less value to the Sears brand, they don't see the former retail giant surviving.
Once the world's largest retailer in the 1960's, the chain has struggled to compete with Walmart, Amazon, and other online and even revamped brick and mortar chains.