Kmart filed for Chapter 11 bankruptcy court protection on January Kmart emerged from bankruptcy court protection in May Pedestrians pass a Kmart location in New York. Oct 11, · A Sears US:SHLD bankruptcy would be the latest in a long line of filings from the retail sector, including recently Toys ‘R’ Us. However, unlike many previous bankruptcies and restructurings. Jan 23, · In filings with the United States Bankruptcy Court in the Northern District of Illinois, in Chicago, Kmart listed $ billion in assets and $ billion in debt.
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Kmart stores seem to be facing the same issues. When we visited one of the discount stores the day after the company filed for bankruptcy, it had rusty shelves, huge empty spaces, and piles of boxes left around.
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World globe An icon of the world globe, indicating different international options. Jessica Tyler. At the front of the store was a small Halloween section There was also a recycling machine near the front of the store, though it was tucked away in the corner and hidden by other merchandise. There was also a huge cosmetics section carrying drugstore products It felt pretty outdated — most of the electronics department's offerings were DVDs.
The rest of the first floor was a bit of a mess. There was one whole aisle in which the shelves were caged off. It looked as if it was intended for online order pickup, but it was hard to tell. The holiday department was alternating shelves between Halloween and Christmas. There was a lot of empty spaces on the shelves.
In the middle of the store were a table and a few chairs in a setup labeled "Welcome Center," but I couldn't tell what it was actually for. It seemed really out of place. Behind the Welcome Center were boxes of merchandise stacked halfway to the ceiling. The back of the first floor wasn't in very good shape. Last week , the company called off a bankruptcy auction for its brand name and other intellectual property, proposing a plan for reorganizing.
Put bluntly, it has failed on every facet of retailing from assortment to service to merchandise to basic shopkeeping standards. Tatelbaum raises another possibility: that Kmart, which became part of Sears in when it filed for bankruptcy, could survive. The divorce may be good for them. These customers have frequented dollar stores like Dollar General Corp. DG, In the end, however, creditors and others that have dealings with Sears could lose a lot if a bankruptcy happens.
Some malls, like one near him in Burlington, Mass. See: A Sears bankruptcy could be a win for some landlords. But they have, in the process, protected themselves. Read: Yes, Sears is likely to collapse, but its biggest stakeholder will be just fine. Sears shares closed Wednesday down Tonya Garcia is a MarketWatch reporter covering retail and consumer-oriented companies.
You can follow her on Twitter tgarcianyc. She is based in New York. Tonya joined MarketWatch from Moguldom Media, where she was business editor for MadameNoire, a website targeting African-American women with a range of content from personal finance to economics, politics, education and lifestyle and entertainment.