Bankruptcy application of the department store Sears becomes more and more likely
Many investors voted Wednesday to remove Sears' remaining stock from their portfolios. As a result, the price of the well-known brand dropped by up to 40 percent. According to insider information from the company, the management seems to be working to put companies under creditor protection until Friday. The current rumors were preceded by a post in the Wall Street Journal, according to which Sears sought help from M-III Partners LLC to prepare the applications in the United States. On Monday, the company would have to repay more than $ 150 million in debt - and it seems like you can not raise that amount anymore.
Of course, this development is not surprising: For years, Sears has been struggling with getting into the important area of e-commerce too late. The big online retailers around Amazon have a broader portfolio of products to offer and various other services that have made Sears unimportant for many consumers. In addition, the company has been unsuccessful in its restructuring strategy, as well as struggling with slowing trades in the not-so-popular US malls.
Peak in 2007 - and then only losses
Sears reached its highest level in its own share price in 2007. After that, however, the brand went downhill rapidly. Since 2008, the company has consistently been in the red, always had to correct its forecasts, and in earlier times had to rely on billionaire Eddie Lampert to save the company. That seemed to be the hope of Sears now, but negotiations between the company and the head of the group have stalled and one could not agree on a plan for the renewal of the traditional brand. Accordingly, on Friday, it could actually be enough for Sears to file for insolvency. Then you will see how it will continue with the many shops and especially the employees of the once so important brand.