Sears Holdings files Chapter 11 bankruptcy; CEO Eddie Lampert steps down

This Sears department store in Henderson, Nevada is among the 142 stores that will begin liquidation sales soon. (Jason Rzucidlo/AmericaJR)

HOFFMAN ESTATES, Ill. — Sears Holdings Corporation (“Holdings,” “we,” “our,” or the “Company”) (NASDAQ: SHLD) today announced a series of actions to position the Company to establish a sustainable capital structure, continue streamlining its operating model and grow profitably for the long term. To facilitate these actions, the Company and certain of its subsidiaries have filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of New York (the “Court”).

The Company expects to move through the restructuring process as expeditiously as possible and is committed to pursuing a plan of reorganization in the very near term as it continues negotiations with major stakeholders started prior to today’s announcement.

Holdings has received commitments for $300 million in senior priming debtor-in-possession (“DIP”) financing from its senior secured asset-based revolving lenders and is negotiating a $300 millionsubordinated DIP financing with ESL Investments, Inc. (“ESL”). ESL is the Company’s largest stockholder and creditor, and Edward S. Lampert is ESL’s Chairman and Chief Executive Officer. Subject to Court approval, the DIP financing is expected to improve the Company’s financial position immediately and support its operations during the financial restructuring process.

Holdings has filed a number of customary motions with the Court seeking authorization to support its operations during the restructuring process and ensure a smooth transition into Chapter 11. The Company intends to continue payment of employee wages and benefits, honor member programs, and pay vendors and suppliers in the ordinary course for all goods and services provided on or after the filing date.

Sears shopping carts in front of the Henderson, Nevada location. (Jason Rzucidlo/AmericaJR)

The Company’s Sears and Kmart stores, and its online and mobile platforms, are open and continue to offer a full range of products and services to members and customers. Holdings’ services and brand businesses will also continue to operate as usual. Customers should expect Holdings’ loyalty programs, including the Shop Your Way membership program, and the Sears and private label credit card rewards programs, to continue as normal. The Company is committed to working with its vendors and other partners to help maintain inventory levels and ensure timely product delivery.

“Over the last several years, we have worked hard to transform our business and unlock the value of our assets,” said Edward S. Lampert, Chairman of Sears Holdings. “While we have made progress, the plan has yet to deliver the results we have desired, and addressing the Company’s immediate liquidity needs has impacted our efforts to become a profitable and more competitive retailer. The Chapter 11 process will give Holdings the flexibility to strengthen its balance sheet, enabling the Company to accelerate its strategic transformation, continue right sizing its operating model, and return to profitability. Our goal is to achieve a comprehensive restructuring as efficiently as possible, working closely with our creditors and other debtholders, and be better positioned to execute on our strategy and key priorities.”

Lampert continued, “As we look toward the holiday season, Sears and Kmart stores remain open for business and our dedicated associates look forward to serving our members and customers. We thank our vendors for their continuing support through the upcoming season and beyond. We also thank our associates for their hard work and commitment to providing millions of Americans with value and convenience.”

Strategic Actions

Holdings intends to reorganize around a smaller store platform of EBITDA-positive stores. The Company believes that a successful reorganization will save the Company and the jobs of tens of thousands of store associates. Holdings is currently in discussions with ESL regarding a stalking-horse bid for the purchase of a large portion of the Company’s store base. There can be no assurance that any transaction will be consummated or on what terms any transaction may occur. Additionally, Holdings expects to market and sell certain of the Company’s assets over the coming months.

Holdings will also close 142 unprofitable stores near the end of the year. Liquidation sales at these stores are expected to begin shortly. This is in addition to the previously announced closure of 46 unprofitable stores that is expected to be completed by November 2018.

Leadership and Board Changes

Holdings has enacted a series of leadership and Board changes in support of the continued transformation and restructuring process:

  • CEO TransitionEdward S. Lampert has stepped down from his role as Chief Executive Officer of the Company, effective immediately. He will remain Chairman of the Board. The Company’s Board has created an Office of the CEO, which will be responsible for managing the Company’s day-to-day operations during this process. The Office of the CEO will be composed of Robert A. Riecker, Chief Financial Officer; Leena Munjal, Chief Digital Officer, Customer Experience and Integrated Retail; and Gregory Ladley, President of Apparel and Footwear.
  • Formation of Restructuring Committee: The Board has formed a special committee (the “Restructuring Committee”) that will oversee the restructuring process and have decision making authority with respect to transactions involving affiliated parties. The Restructuring Committee consists solely of independent directors and includes Alan J. CarrPaul G. DePodestaAnn N. Reese and William L. Transier.
  • Appointment of Chief Restructuring OfficerMohsin Y. Meghji, Managing Partner of M-III Partners, has been appointed Chief Restructuring Officer. Meghji is a nationally recognized U.S. turnaround professional with a track record of revitalizing companies experiencing financial, operational or strategic transitions to maximize value for stakeholders. He has joined the Company’s senior management team and will help lead the Company’s restructuring efforts, reporting to the Restructuring Committee.
  • Addition of New Independent Director: William L. Transier, Chief Executive Officer of Transier Advisors LLC, has joined Holdings’ Board as an independent director. In addition to his leadership roles at public companies, Transier has extensive restructuring experience involving companies with complex capital structures and has served on special committees of independent directors responsible for overseeing restructuring processes. This appointment follows the recent addition of Alan J. Carr to the Board.


Weil, Gotshal & Manges LLP is serving as legal counsel, M-III Partners is serving as restructuring advisor and Lazard Frères & Co. LLC is serving as investment banker to Holdings.

About Sears Holdings Corporation

Sears Holdings Corporation (NASDAQ: SHLD) is a leading integrated retailer focused on seamlessly connecting the digital and physical shopping experiences to serve our members – wherever, whenever and however they want to shop. Sears Holdings is home to Shop Your Way®, a social shopping platform offering members rewards for shopping at Sears and Kmart as well as with other retail partners across categories important to them. The Company operates through its subsidiaries, including Sears, Roebuck and Co. and Kmart Corporation, with full-line and specialty retail stores across the United States. For more information, visit

Source: Sears Holdings Corporation


Here are the 142 Sears and Kmart locations that will be closing:

Liquidation sales at select Kmart stores are expected to begin within the next two weeks. (Jason Rzucidlo/AmericaJR)



2821 East Main St Russellville, AR 72801-9801


215 W Hanford/Armona Rd Lemoore, CA 93245-2302

1351 E Hatch Rd Modesto, CA 95351-5010

375 E Alessandro Blvd Riverside, CA 92508-2463

3247 W Noble Ave Visalia, CA 93277-1841

912 County Line Rd Delano, CA 93215-3823

2530 S Euclid Ave Ontario, CA 91762-6619

3968-A Missouri Flat Road Placerville, CA 95667-5240


900 N W 76 Boulevard Gainesville, FL 32606-6747

12350 Sw 8Th Street Miami, FL 33184-1510 (Goodwill)


400 Crosstown Road Peachtree City, GA 30269-2915

6239 Turner Lake Road Covington, GA 30014-2064


3701 Broadway St Quincy, IL 62301-3721 (Ruby Tuesday)

4210 N Harlem Ave Norridge, IL 60706-1277

5000 23Rd Ave Moline, IL 61265-4599


430 W Ridge Rd Griffith, IN 46319-1095 (El Centro Mall)

723 3rd Ave Jasper, IN 47546-3639


2803 E Kanesville Blvd Council Bluffs, IA 51503-1004

1111 N 2nd Cherokee, IA 51012-1287

2307 Superior Webster City, IA 50595-3165


400 South Broadway Salina, KS 67401-4005

7836 State Ave Kansas City, KS 66112-2417


600 C W Stevens Blvd Grayson, KY 41143-1190

Northridge S/C Us Hwy 127 Russell Springs, KY 42642-4559


7000 Veterans Memorial Metairie, LA 70003-4497


417 Main Street Madawaska, ME 04756-1197


835 Solomons Island Rd N Prince Frederick, MD 20678-3912

6163 Oxon Hill Road Oxon Hill, MD 20745-3108


06600 M-66 North Charlevoix, MI 49720-9505

1025 M-24 Lake Orion, MI 48360-1429


2901-5 N Belt Hwy St. Joseph, MO 64506-2006

7100 NW Prairie View Rd Kansas City, MO 64151-1630 (Zeller Auto Repair)

1 Flower Valley Shp Ctr Florissant, MO 63033-1644

New Jersey

779 Delsea Dr N Glassboro, NJ 08028-1435

New York

987 Route 6 Mahopac, NY 10541-1709

8363 Lewiston Road Batavia, NY 14020-1236

2590 Military Rd Niagara Falls, NY 14304-1506

349 Orchard Park Rd West Seneca, NY 14224-2634

93 West Campbell Rd Schenectady, NY 12306-6800

North Carolina

1530 East Broad Street Statesville, NC 28625-4302

4500 Western Blvd Raleigh, NC 27606-1814 (Choice Auto Repair)

1001 Patton Ave Asheville, NC 28806-3643


15891 State Rt 170 East Liverpool, OH 43920-9633

17840 Bagley Rd Middleburg Heights, OH 44130-3401


3955 S W Murray Blvd Beaverton, OR 97005-2316 (Glowing Greens LLC)


720 Clairton Blvd/Rte 51 Pleasant Hills, PA 15236-4517

528 W Plank Road Altoona, PA 16602-2802

1502 South Fourth St Allentown, PA 18103-4949 (Floreff LLC & Nathan & Alison LLC)

1000 Nutt Rd Phoenixville, PA 19460-2200

1170 Mae Street Hummelstown, PA 17036-9185

100 Tarentum Rd New Kensington, PA 15068-4670

1180 Walnut Bottom Rd Carlisle, PA 17013-9160

3205 Lincoln Hwy Thorndale, PA 19372-1012

111 Hulst Dr, Ste 722 Matamoras, PA 18336-2115

South Carolina

129 West Butler Avenue Mauldin, SC 29662-2534 (Mauldin at Butler LLC)

2302 Cherry Rd Rock Hill, SC 29732-2165


6909 Maynardville Pike Ne Knoxville, TN 37918-5325


6364 Springfield Plaza Springfield, VA 22150-3431

118 Waller Mill Rd Williamsburg, VA 23185-2946 (New Oriental Crafts LLC)

2712 W Main St Waynesboro, VA 22980-1618


1001 E Sunset Drive Bellingham, WA 98226-3510

West Virginia

1701 4Th Ave W Charleston, WV 25387-2415


4000 East 2nd Street Casper, WY 82609-2385



1001 Rainbow Dr Gadsden, AL 35901-5376


2250 El Mercado Loop Sierra Vista, AZ 85635-5204

3150 S 4Th Ave Yuma, AZ 85364-8104

6515 E Southern Ave Mesa/East, AZ 85206-3711

7611 W Thomas Rd Phoenix-Desert Sky, AZ 85033-5433

3177 Chandler Village Dr Chandler, AZ 85226-


1700 Stoneridge Dr Pleasanton, CA 94588- (Lands’ End)

100 Santa Rosa Plz Santa Rosa, CA 95401-6381 (Lands’ End)

3333 Bristol St Costa Mesa, CA 92626-1811 (Lands’ End)

1011 W Olive Ave Merced, CA 95348-2422

5901 Florin Rd Florin, CA 95823-2302

3751 S Dogwood Ave El Centro, CA 92243-

100 Vintage Faire Mall Modesto, CA 95356-0559

100 Los Cerritos Mall Cerritos, CA 90703-5421

1401 N Montebello Blvd Montebello, CA 90640-2584

3001 Ming Ave Bakersfield, CA 93304-4145


10785 W Colfax Ave Lakewood, CO 80215-3807

7001 S University Blvd Centennial, CO 80122-1599 (Lands’ End)


1201 Boston Post Rd Sp 2095 Milford, CT 06460- (Lands’ End)

850 Hartford Tnpk Waterford, CT 06385- (Lands’ End Inc.)


733 N Highway 231 Panama City, FL 32405-5302

300 Mary Esther Blvd Mry Est/Ft Wltn Bch, FL 32569-1693

1050 S Babcock St Melbourne, FL 32901-3022

3800 Us Highway 98 N Ste 500 Lakeland, FL 33809-3824

303 Us Hwy 301 Blvd W Bradenton, FL 34205-7991

3100 Sw College Rd Ste 300 Ocala, FL 34474-8449


460 N Milwaukee St Boise, ID 83704-9122


3340 Mall Loop Dr Joliet, IL 60431-1057


1251 Us Highway 31 N Greenwood, IN 46142-4503

6780 W Washington St Indianapolis, IN 46241-2999

3401 S Us Highway 41 Terre Haute, IN 47802-4154


4807 Outer Loop Louisville-Okolona, KY 40219-3200

2625 Scottsville Rd Bowling Green, KY 42104-4477


15700 Emerald Way Bowie, MD 20716-2200

400 N Center St Westminster, MD 21157-5140

10300 Little Patuxent Pkwy Columbia, MD 21044-3341 (Lands’ End)


1235 Worcester Rd & Natick, MA 01760 (Lands’ End)


900 Briarwood Cir Ann Arbor, MI 48108-1618 (Lands’ End)

2100 Southfield Rd Lincoln Park, MI 48146-2250


425 Rice St St Paul, MN 55103-2123

12431 Wayzata Blvd Minnetonka, MN 55305-1925 (Lands’ End)

This Sears store in Henderson, Nevada is among the 142 to be closed. (Jason Rzucidlo/AmericaJR)


1245 W Warm Springs Rd Henderson, NV 89014-8740

New Hampshire

50 Fox Run Rd Ste 74 Portsmouth, NH 03801-2858 (Lands’ End)

New Jersey

1500 Highway 35 Middletown, NJ 07748-1831 (Lands’ End)

1750 Deptford Center Rd Deptford, NJ 08096-5282 (Lands’ End)

New Mexico

6600 Menaul Blvd Ne Ste 700 Coronado, NM 87110-3447

New York

75 W Route 59 Ste 100 Nanuet, NY 10954-2701 (Lands’ End)

1111 Franklin Ave Garden City, NY 11530-1617  (Lands’ End)

600 Lee Blvd Yorktown Hts, NY 10598-1142

Rt 394 & Hunt Blvd Lakewood, NY 14750

North Carolina

703 N Berkeley Blvd Goldsboro, NC 27534-3444

400 Cross Creek Mall Fayetteville, NC 28303-7244

11033 Carolina Place Pkwy Pineville, NC 28134-8370 (Lands’ End)


5320 Youngstown Rd Niles, OH 44446


6929 S Memorial Dr Tulsa Woodland Hls, OK 74133-2035

9800 Sw Washington Square Rd Washington Sq, OR 97223-4455 (Lands’ End)

3201 W Main St Norman, OK 73072-4847


827 Lancaster Dr Ne Salem (Lancaster), OR 97301-2929


880 Butler Street Pittsburgh, PA 15223-1319

5522 Shaffer Rd Ste 129 Dubois, PA 15801-3304

100 Neshaminy Mall Bensalem/ Crnwls Hts, PA 19020-1607

2300 E Lincoln Hwy Langhrn /Oxford Vly, PA 19047-1824 (Lands’ End)


7600H Kingston Pike West Town, TN 37919-5604 (Lands’ End)

2800 N Germantown Prkway Cordova, TN 38133 (Lands’ End Inc.)

2801 Wilma Rudolph Blvd Clarksville, TN 37040-5011

2100 Hamilton Place Blvd Chattanooga, TN 37421-6006


7508 N Navarro St Victoria, TX 77904-2654

2901 S Capitol Of Texas Hwy Austin/Barton Creek, TX 78746-8101

3450 W Camp Wisdom Rd Southwest Ctr, TX 75237-2504

2501 Irving Mall Irving, TX 75062-5161

6301 Nw Loop 410 Ingram, TX 78238-3824

1000 E 41st Austin, TX 78751-4859

6002 Slide Rd Lubbock, TX 79414-8555

2002 S Expy 83 Harlingen, TX 78552-

2605 Preston Rd Frisco, TX 75034-9434


100 Newmarket Fair Mall Hampton, VA 23605-1406


3500 S Meridian Ste 900 Puyallup, WA 98373-3722

West Virginia

9520 Mall Rd Westover/Morgantown, WV 26501-8524


701 Se Wyoming Blvd Casper, WY 82609-4213



Whirlpool Corporation Statement on Sears Bankruptcy Filing

BENTON HARBOR, Mich. — Whirlpool Corporation (NYSE: WHR) confirms the recently announced Sears Holdings Corporation (“Sears”) bankruptcy will have a very limited impact on Whirlpool’s results of operations.  As of September 30, 2018, approximately $30 million or 1% of Whirlpool’s aggregate accounts receivable exposure was related to Sears, and Whirlpool had an immaterial amount of Sears-related inventory.  In addition, net sales to Sears represented less than 2% of Whirlpool’s global net sales.

In the past, when faced with a potential volume reduction from any one particular segment of the trade distribution network, Whirlpool has been able to offset such declines with increased sales through a broad distribution network.

“Our products are sold where consumers want to shop with distribution across all big-box retailers, the homebuilding channel and independent retailers,” said Joe Liotine, President, Whirlpool Corporation North America.  “We will continue to provide a great array of product offerings and services that meet consumer needs, offering strong brands that deliver innovation to consumers every day.”

Whirlpool does not anticipate this bankruptcy will have any impact on our full-year 2018 EPS guidance or financial results over the long term.  Further updates will be provided on Whirlpool’s conference call to discuss third-quarter financial results.

About Whirlpool Corporation
Whirlpool Corporation (NYSE: WHR) is the world’s leading major home appliance company, with approximately $21 billion in annual sales, 92,000 employees and 70 manufacturing and technology research centers in 2017. The company markets WhirlpoolKitchenAidMaytagConsulBrastempAmanaBauknechtJenn-AirIndesit and other major brand names in nearly every country throughout the world. Additional information about the company can be found on Twitter at @WhirlpoolCorp.

Source: Whirlpool Corporation



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