Sears files for bankruptcy

– Sears, the venerable chain that once dominated the American retail sector but had been in decline, filed for bankruptcy yesterday and announced it was closing almost 150 stores.

With a history that stretches back to 1886, the company was a pioneer of departmental stores that sold all things to all people and by the mid-20th century had built a vast empire that stretched across North America.

But it has closed hundreds of outlets in recent years amid a retail shakeout caused, in part, by the rise of Amazon and other e-commerce players.

“The company and certain of its subsidiaries have filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code...” a statement by Sears Holdings Corporation said. Sears reportedly could not afford a $134-million repayment that had been due yesterday.

The company said it intended to reorganise around a smaller store platform, which would help save tens of thousands of jobs.

It had 89 000 employees as of February, according to a filing with the Securities and Exchange Commission.

But it announced it would close 142 stores near the end of the year. – AFP

Washington