SEARS To Close: End Of An Era As $4.4 Billion Bid To Save Company Fails
Hoffman Estates, Illinois – Truck drivers have been hauling products sold in Sears stores for more than 100 years, but today the once-proud U.S. company announced it would be closing its doors to customers.
On Tuesday, the company announced Sears Holdings rejected Chairman Eddie Lampert’s $4.4 billion bid to keep the company in business. This move now puts the giant retailer on a path to liquidation and its 50,000 employees in a difficult situation.
Leading to the company’s demise was the explosive growth of online retailers like Amazon, better management by competitors like Walmart and Target, along with Sears’ failed attempt to revive K-Mart. The “bankrupt” retailer was a drag on the company leading to Sears ultimately also filing bankruptcy in October of 2018.
Lampert had put forward a $4.4 billion bid to save Sears by buying it out of bankruptcy through his hedge fund ESL Investments. His offer, though, was deemed insufficient by Sears’ advisors in-part because the fees and vendor payment it owes is simply too much making the company “administratively insolvent.”
Lampert is already contesting the decision by Sears Holdings pointing to the money ESL Investments spent on advisors. Still, it marks the end of an era for the company that started in 1893 as Sears, Roebuck & Co., and was once the nation’s largest retailer.
During its incredible run Sears became known as the “first everything store,” but in the end, it simply couldn’t compete with the likes of Amazon, the new “everything store.”