Sears Avoids Liquidation, Stores To Remain Open After Chairman Wins Auction With $5.2 Billion Bid
A last-minute reprieve for Sears, after the retailer's former CEO made the winning takeover bid in a bankruptcy auction.
Watch CBS News
A last-minute reprieve for Sears, after the retailer's former CEO made the winning takeover bid in a bankruptcy auction.
Sears' fate has been twisting in the wind for years, but since its bankruptcy filing, its demise has appeared imminent. At its peak in 2012, its stores numbered 4,000, a far cry from the just under 700 stores and 68,000 workers it had as of October.
Many employees and customers are in shock. Many thought liquidation was inevitable. But now the 126-year-old company may have one lifeline left.
After two long delays at a morning hearing in bankruptcy court, attorneys for Sears announced it had accepted a revised bid from a hedge fund controlled by Eddie Lampert, the chairman and former CEO of Sears. The deal could keep 425 of the stores open.
Even if Sears survives bankruptcy, there will be a wide swath of America that no longer has any of its stores.
Facing a Friday deadline for potential buyers to submit bids for its remaining assets, Sears has announced it is closing 80 more stores by March, including two in Illinois.
Sears is nearing a crucial deadline that could determine whether it survives.
The Boy Scouts of America is facing a growing number of sexual abuse and misconduct lawsuits. The organization is considering filing for bankruptcy, due in part, to the massive payouts from these cases.
"The company has zero chance of success. I hate to say that, because there's still quite a few people in the U.S. at least who look to Sears for their employment, but there's no chance for the future there, in my opinion."
After CBS 2's initial story about HOBO declaring bankruptcy, an anonymous viewer reached out to help Leroy Bell get his cabinets.
Chicago-based Sears filed for Chapter 11 bankruptcy protection in October, weighed down by years of declining sales and massive debt.
The nation's largest bridal retailer filed for Chapter 11 bankruptcy protection on Monday. It owes between $500 million and $1 billion to creditors, according to court records.
Home improvement retailer, Home Owners Bargain Outlet (HOBO) filed for bankruptcy, leaving some costumers without refunds. HOBO has five stores in the Chicago area.
"I am beyond frustrated. If they're doing this to other customers, their demise seems imminent."
Facing massive debt and declining sales, Sears has filed for bankruptcy protection, and will be closing more than 180 stores by the end of the year.
Sears Holdings (SHLD), the parent company of Sears and Kmart, faces a Monday deadline to pay that much in debt.
All signs point to a bankruptcy filing in the next few days. Sears' stock has fallen more than 50% in the last five days to around 35 cents a share.
One of Sears' major shareholders just dumped a chunk of his stock for pennies on his original investment.
A group of investors is scrapping an auction for Toys R Us assets, despite receiving a number of qualified bids, and will work with potential partners to develop new ideas for stores.
As stunned friends and neighbors ask how the story of a couple that seemed so picture perfect could end so tragically, bankruptcy filings reveal a family that had struggled financially.
Even though the U.S. population is aging, the spike in older Americans entering bankruptcy far exceeds the demographic shift.
The mystery buyer's immense gesture of good faith is a silver lining in what, to many, has been a sad narrative on the shuttering of an iconic American business.
Friday is last call for one of the most recognizable names in retail, as the last remaining Toys "R" Us stores will close their doors for good.
Toys R Us could begin liquidation sales at its stores on Friday.
Bankrupt retailer Toys "R" Us may shut all its U.S. stores as soon as next week, according to several reports.
