Under the pressure of high debt and poor performance, the 100-year-old American grandfather retail giant Sears fell. According to Reuters news, on the 15th local time, Sears officially filed for bankruptcy protection in the US court.
Under the global economic downturn, Toys R Us, the largest toy chain in the US, RadioShack, the US electronics retailer with the best reputation, and Sports, the fourth largest sporting goods retailer in the US Authority, both applied for bankruptcy protection during the two years.
U.S. President Trump expressed regret for this, but he also pointed out that it was Sears' own mismanagement.
Sears has lost more than $11 billion since 2011, and annual sales have fallen nearly 60% to $16.7 billion. The company needs to raise more than $1 billion a year to maintain operations. Its share price reached more than $130 per share in 2007, and it fell to 25 cents yesterday.
The last straw that crushed Sears was a $134 million debt – Sears was unable to repay on the 15th deadline.
Since it has already applied for bankruptcy, Sears still wants to hold on for a while. Sears plans to close its 188 department stores by the end of the year, guaranteeing 300 stores to open operations, and the fate of the remaining 250 stores is uncertain. Currently, there are 68,000 employees under Sears.
With regard to the money used for this renewal, Sears is negotiating with creditors for emergency financing, in the hope of obtaining $500 million to $600 million in financing in the bankruptcy process. Not surprisingly, Americans can also see the last side of Sears on this Christmas holiday.
CNN News Network introduced that the establishment of Sears in 1886 completely changed the American way of life.
After the civil war, the United States attached importance to the development of urban-rural suburbs. Sears integrated the retail industry on this land of farmers and farmers, and presented it to Americans for the first time in the form of department stores. Open your eyes. Sears is also the first retail company to introduce a credit system into the US urban-rural division.
In 1906, Sears officially went public, initially with a market capitalization of about $40 million. It was once known as the first IPO in the US financial history. In the 1940s, Sears' revenue was once as high as 1% of US GDP at that time, and then developed into the world's largest department store retailer. It was not until 1989 that Wal-Mart broke the sales record of Sears.
Furniance was once one of the most iconic products of Sears. There was a time when one in every two American families used Sears products.
But Sears is not just selling furniture. Since 1908, Sears has been selling Sears Modern House, providing buyers with a full range of services including drawing drawings, ordering raw materials, and placing furniture. In other words, Sears has been able to retail to sell houses. All the materials are sent to the door with just one phone call. From 1908 to 1940, Sears sold 75,000 modern homes.
Page turned by e-commerce
In the past decade, Sears has been striving to innovate in response to the impact of the rise of e-commerce. But because of the continued decline in retail sales and the fact that its debt has completely exceeded the affordable level, Sears may have to face bankruptcy liquidation.
Sears is not alone. Under the turbulent Internet economy, Toys R Us, the largest toy chain in the United States, RadioShack, the US electronics retailer with the best reputation, and Sports Authority, the fourth largest sporting goods retailer in the United States. In the past two years, I applied for bankruptcy protection.
Reuters said that former Sears CEO Eddie Lampert had planned to sell $1.75 billion in assets, $1.7 billion in real estate transactions, and $1.12 billion in debt updates, which would make Unliquidated debt fell from the current $5.59 billion to $1.24 billion.
But due to the company's poor financial performance, its creditors refused to support his restructuring plan, which forced bankruptcy or became the only option. On the 15th, Lampard has announced his resignation as CEO, and all of Sears' business will be handed over to three executive executives.
And now that the United States is changed, it is an e-commerce company represented by Amazon.
In 1997, it was only Amazon, a online bookstore, with an IPO price of $18 and a valuation of $438 million. At the time, Amazon founder Bezos said in a letter to shareholders that this was the first day of the Internet and the first day of Amazon. Today, Amazon's market capitalization once exceeded $1 trillion. According to eMarketer's data, Amazon's total sales so far this year accounted for 49.1% of all online retail sales in the United States, accounting for 5% of total national retail sales.
Trump: Sears was really a cow, but he didn't manage well
On the day when Sears filed for bankruptcy (15th), Bloomberg revealed that the current US finance minister, Steven Mnuchin, served as a director of Sears from 2005 to 2016.
In January 2017, Nuchin invested $26 million in a hedge fund owned by Lampard.
But the US Treasury did not respond to media requests for the first time.
And Trump plans to travel to Florida on the 15th to inspect the disaster situation (the state has just experienced the strongest hurricane ever recorded). Before the departure, he said in an interview with the media in the White House that Sears was 'quickly dead' for several years. Obviously, this was caused by poor management over the years. it's a pity.
For my generation, Sears was really a cow, so it was sad to see them go bankrupt.