Eastwood Mall Sears, East Liverpool Kmart to close after Sears files for bankruptcy
In the early hours of Monday, Sears announced that it had filed for Chapter 11 bankruptcy.
In the latest round of what it calls "streamlining" efforts, Sears has announced major measures to continue to try to move the company forward.
In the early hours of Monday, Sears announced that it had filed for Chapter 11 bankruptcy. A release from the company also says the current chief executive officer will step down, effective immediately.
According to CNN, the bankruptcy announcement comes just hours before a deadline to pay back $134 million in debt.
According to the release, the now-former CEO Edward Lampert 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 company, which also operates Kmart retailers, also announced that they will be closing 142 stores nationwide in order to continue streamlining their "operations model".
Two Valley retailers, including the Sears location in the Eastwood Mall, as well as a Kmart location in East Liverpool, will be closing.
A release says they are expected to shut their doors by the end of the year. The company says they expect liquidation sales will begin shortly.
The latest round of closings follows a late summer announcement that the company would shut down 46 "unprofitable stores". That announcement came just three months after Sears announced the closure of 72 stores.
Sears shut down its store at the Southern Park Mall in Boardman this summer, leaving the only company-operated Sears store in the Valley at the Eastwood Mall in Niles.
Sears Holdings also closed Kmart stores in Niles, Austintown, and Hermitage this year.
Only one Kmart location remains in the Valley - New Castle.
The effort comes as part of what Sears says is a move toward a "smaller store platform".
However, Sears says that shoppers can still expect to find holiday shopping source online and through the mobile platforms and that they will still honor holiday loyalty programs, including the Shop Your Way membership program, and the Sears and private label credit card rewards programs.
21 News talked to some of those shoppers, who say they're sorry to see the iconic brand leave the mall.
"I couldn't believe it, I thought since they teamed up with Kmart that they'd become more aggressive and find a solution," said John Dowdell of Warren.
"I've only bought my tools at Sears, now I don't know where I'm going to be buying my tools," added John Vansach of Brookfield.
But while the shoppers will miss Sears, the Eastwood Mall's developer, the Cafaro Company, is confident that whatever takes its place will more than fill the void.
"We see this as an opportunity to redevelop a space that really has kind of gone dormant in a lot of ways," says Cafaro Company spokesman Joe Bell. "(things like) restaurants, entertainment, all kinds of possibilities, so we're really optimistic about what the future brings."
The company says in its release that it 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.
A statement from the company reads, in part:
"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."
Complete list of store closings